An Analysis of Market Integration for Two Vegetables in West Java, Indonesia

Vegetables are important in Indonesia from the point of view of consumption, production and income. Vegetable production has been increased every year since the early 1970s and, in 1983, it increased by 35.1 per cent over the 1982 level. Marketing is one of the constraints in Indonesian agriculture. One of the important problems in agricultural marketing is the farmers' lack of knowledge of the local conditions and potential market. Therefore, the government has implemented marketing information services since 1979, which are designed to assist farmers and buyers to understand the price movement and other marketing parameters. West Java is one of the most important provinces in Indonesia in terms of agricultural production and is the biggest supplier of vegetables for the capital city of Indonesia, Jakarta. In West Java,the vegetables which have the main role in the economy are potatoes, cabbages, carrots, tomatoes, red peppers and onions. The general objective of the study is to identify the price integration among markets for selected vegetables. More specifically, the objectives of the study are: (1) to study the price integration of market places for major perishable vegetables over time; (2) to study the price integration of market places for relatively non-perishable vegetables over time; and (3) to draw policy implications from the foregoing analysis. The measurement of price integration is undertaken using the concept of market integration. The market integration model can be employed to measure the extent to which local prices are influenced by prices elsewhere (Ravallion 1986). The present study used local prices in the production area of West Java and the reference prices are from Jakarta and Bandung. The study employed the index of market connection (IMC) constructed by Timmer (in Heytens 1986) to measure the degree of market integration between the local and reference markets. With the availability of appropriate data, the study used daily prices of potatoes and cabbages which are broadcast nationally every weekday at 8.05 p.m. (West-Indonesian Time). Potatoes were studied in two reference markets (Jakarta and Bandung) and three local markets (Pangalengan, Cikajang and Ciwidey) over the period 1986-1988. Cabbages, like potatoes, were studied in two reference markets and four local markets (Pangalengan, Cikajang, Cipanas and Lembang) during 1987-1988. The analysis of the degree of market integration was undertaken in two parts, i.e., for the whole study period and on a year by year basis. Firstly, the model was run by using the ordinary least squares (OLS) method where R squared values were satisfactory and F tests were satisfied. However, the Durbin h statistic indicated most of the models had autocorrelation (positive or negative). Therefore, the model was re-estimated using the moving average first order (MA (1)) error method. For the whole study period, the degree of market integration between the local markets and the reference market of Jakarta was found to be maximal. The highest degree of integration with a local market was for Ciwidey (for potatoes) and for Cipanas (for cabbages). The degree of market integration for potatoes is higher than that for cabbages. On the year by year basis, the results were not very different, although some differences were found. For example, these results indicated that in some years the markets are segmented rather than integrated for all years as suggested by the results of the whole period analysis. Finally, following the results of the study and assessment of the hypotheses, some possible policy recommendations and limitations of the present study are noted, and directions for further research are suggested

A sub-national economic complexity analysis of Australia’s states and territories

© 2017 Regional Studies AssociationA sub-national economic complexity analysis of Australia’s states and territories. Regional Studies. This paper applies economic complexity analysis to the Australian sub-national economy (nine regions with 506 exported goods and services). Using a 2009 Australian multi-regional input–output table for base data, we determine the number of export goods or services in which each state and territory has a revealed comparative advantage, and visualize the complexity of Australia’s interstate and international exports. We find that small differences in industrial capability and knowledge are crucial to relative complexity. The majority of states (especially Western Australia) export primarily resource-intensive goods, yet interstate trade has many complex products that are not currently internationally exported

Factors Affecting Japanese Investment in the Australian Beef Industry

This paper begins with details on the current level of Japanese investment in the Australian beef industry. The reasons for direct investment by Japanese firms in the Australian beef industry are investigated, as is the nature and extent of integration by these firms in the Japanese beef production and marketing chain. The results are shown to be consistent with foreign direct investment theory. Specifically, the desire to provide quality assurance through ownership of upstream production facilities and the potential to exploit a domestic marketing and distribution advantage provide the principal motivations for beef industry foreign direct investment by Japanese firms

Land repair fund: a model for exploiting the nexus between land repair, improved production and profit

Typically, the techniques used by the best farm managers to improve productivity are correlated with actions that address land and water degradation issues, thus establishing a nexus between land repair, improved production and profit. To address broader environmental degradation issues, there are a number of programs through which landholders can voluntarily conserve areas of ecological value on their properties. They range from non-binding, temporary agreements to binding agreements that are attached perpetually to the title of the land. There are other ecosystem values for which incentives are being developed, for example, salinity, carbon sequestration and amenity purposes and often there is a range of these that may be applicable to a particular land area. This paper overviews some of the existing revolving fund schemes that have been implemented or are currently being tested in Australia, considers the payment of landholders for providing ecosystem services and then provides details on a case study of one type of revolving fund, the Land Repair Fund

Factors Affecting Japanese Investment in the Australian Beef Industry

This paper begins with details on the current level of Japanese investment in the Australian beef industry. The reasons for direct investment by Japanese firms in the Australian beef industry are investigated, as is the nature and extent of integration by these firms in the Japanese beef production and marketing chain. The results are shown to be consistent with foreign direct investment theory. Specifically, the desire to provide quality assurance through ownership of upstream production facilities and the potential to exploit a domestic marketing and distribution advantage provide the principal motivations for beef industry foreign direct investment by Japanese firms.Livestock Production/Industries,

A Review of Recent Developments in Japanese Agriculture and Agricultural Policy

This paper aims to review major recent developments in Japanese agriculture policy and to evaluate what these changes are likely to mean for the agricultural sector. An overview is provided of the Japanese economy, the position of agriculture in the economy and some of the important characteristics of Japanese farm households. The discussion then focuses on trade related policy developments, particularly those that have received most attention outside Japan. Recent important policy developments are then described for the rice industry, the focus of foreign criticism of Japan's agricultural policies, and the beef industry, an example of an industry to have recently lost protection against imports

Interstate Differences in the Cost of Complying With Feedlot Environmental Regulations: an Initial Investigation

Environmental regulations impose construction and recurring costs on Australian feedlot operators. However to date there has been no published empirical information on these costs of environmental regulation. Additionally, variations in regulations between states and inconsistencies in the application of these regulations may have resulted in a pattern of location different from that dictated by least cost grain and feeder cattle inputs and processing and transportation services. The aim of this study was to attempt to measure the cost of complying with environmental regulations by large commercial feedlots in different Australian states. From data provided from a survey of 20 commercial feedlots it was found that the average cost of complying with these regulations was $36 per head of capacity. Substantial differences in these costs were found between New South Wales and Queensland, the two major producing states, with the more complex regulations in New South Wales resulting in higher costs