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Price fluctuations and market integration of fresh skipjack tuna in Indonesia Abd. Rahim; Diah Retno Dwi Hastuti; Abdul Malik; Wardihan Sabar; Irwandi Irwandi
JOURNAL OF SOCIOECONOMICS AND DEVELOPMENT Vol 7, No 1 (2024): April
Publisher : Publisher of Widyagama University of Malang (UWG Press)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31328/jsed.v7i1.5085

Abstract

Price fluctuations significantly impact the market integration of fresh skipjack tuna. This study employed quantitative methods, analysing time-series data sourced from publicly available secondary outlets. Skipjack price fluctuations were estimated through multiple regression analysis, while skipjack market integration was assessed using the Index of Market Connection (IMC). The research findings indicate that skipjack tuna prices in Indonesia, at the retail, wholesale, and producer levels, are positively influenced by past fluctuations in skipjack prices. However, changes in skipjack prices at the wholesale level do not directly affect retail prices. In the short term, there is relatively high market integration between producer and wholesale markets, as well as between wholesale and retail markets. Producers and wholesale markets function as price-makers, while there is relatively low market integration between the producer and retail markets, where producers act as price-takers. For the market to function optimally, it needs to be wholly interconnected. In the long run, there is no integration in the skipjack market. Efficient marketing distribution requires improved access to infrastructure, including roads, land, and sea transportation. Furthermore, the establishment of a digital marketing system is essential for obtaining quick information on the prices of fishery products, spanning from producer markets, such as fish auctions, to wholesale and retail markets.JEL Classification D82; Q11; Q22To cite this article: Rahim, A., Hastuti, D. R. D., Malik, A., Sabar, W., & Irwandi (2024). Price fluctuations and market integration of fresh skipjack tuna in Indonesia. Journal of Socioeconomics and Development, 7(1), 1-13. https://doi.org/10.31328/jsed.v7i1.5085