Volatility and Transmission of Shallot Commodity Prices in Indonesia

Authors(3) :-Kholifatin Artika, Muhammad Firdaus, Tony Irawan

The shallot commodity has been becoming a strategic issue for the government nowadays because this commodity has contributed to inflation. The price volatility of shallots causes high price disparities between producers and consumers. This situation gives is detrimental more to farmers and consumers than to traders because it provides more opportunities for traders to manipulate information on price, so that price transmission becomes asymmetric. This paper discusses the price transmission of shallots between three players: farmers, wholesalers and retailers. This study used daily data from January 1st 2017 to December 31st 2017 which were analyzed using the ECM-EG method. The wald test results show that shallots commodities showed a price asymmetry in the short term in each marketing chain, namely between producers to wholesalers, wholesalers to retail and retail to producers. Whereas in the long run, the price asymmetry only exist on the wholesale-retail linkage. Meanwhile the transmission of long-term prices between producers to wholesalers, retail to producers in the long-term is symmetrical.

Authors and Affiliations

Kholifatin Artika
Departement of Economic, Bogor Agricultural University, Bogor, Jawa Barat, Indonesia
Muhammad Firdaus
Lecture, Department of Economic, Bogor Agricultural University, Bogor, Jawa Barat, Indonesia
Tony Irawan
Lecture, Department of Economic, Bogor Agricultural University, Bogor, Jawa Barat, Indonesia

Asymmetric Transmission, Shallots, ECM-EG, Farmer-Wholesaler-Retailer Linkage

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Publication Details

Published in : Volume 6 | Issue 5 | September-October 2019
Date of Publication : 2019-09-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 50-61
Manuscript Number : IJSRSET19657
Publisher : Technoscience Academy

Print ISSN : 2395-1990, Online ISSN : 2394-4099

Cite This Article :

Kholifatin Artika, Muhammad Firdaus, Tony Irawan, " Volatility and Transmission of Shallot Commodity Prices in Indonesia, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 6, Issue 5, pp.50-61, September-October-2019. Available at doi : https://doi.org/10.32628/IJSRSET19657      Citation Detection and Elimination     |     
Journal URL : https://ijsrset.com/IJSRSET19657

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