Journal of Agricultural Socio-Economics (JASE)
Vol 2, No 1 (2021): Journal of Agricultural Socio-Economics (JASE)

Integration of Indonesian Coffee Markets with World Coffee Markets

Haposan Orlando Napitupulu (Tribhuwana Tunggadewi University)
Ana Arifatus Sa'diyah (Tribhuwana Tunggadewi University)
Farah Mutiara (Tribhuwana Tunggadewi University)



Article Info

Publish Date
25 Aug 2021

Abstract

This study aims to analyze the integration of the Arabica and Robusta coffee markets in Indonesia with world coffee prices. The study uses secondary data in the form of annual time series data during the period 1985 - 2015. The study uses the VECM analysis method. This method explains the relationship of long-term dynamic equilibrium and short-term equilibrium in a system of equations. The analysis shows that Indonesian and world Arabica coffee is not integrated in the long term or the short term. In Robusta coffee VECM estimation analysis shows that there is a significant value at the 10% level in a long-term relationship with a value of 0.08579, which means that there is a short-term relationship between world Robusta coffee prices and domestic Robusta coffee prices in the previous year, but no relationship in the long run.

Copyrights © 2021






Journal Info

Abbrev

JASE

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

Description

The Agricultural Socio-Economic Journal is an international journal, providing forums for economic research and disciplines related to statistics, econometrics, marketing, agribusiness management, policy, history and sociology, and applications for issues in agriculture, healthy food, and related ...