Integration of Indonesian coffee markets and world coffee markets

Authors

  • Haposan Orlando Napitupulu Departement of Agribusiness, Faculty of Agriculture, University of Tribhuwana Tunggadewi, Malang
  • Ana Arifatus Sa’diyah Departement of Agribusiness, Faculty of Agriculture, University of Tribhuwana Tunggadewi, Malang
  • Farah Mutiara Departement of Agribusiness, Faculty of Agriculture, University of Tribhuwana Tunggadewi, Malang

DOI:

https://doi.org/10.33474/jase.v1i1.7153

Keywords:

coffee, market integration, VAR/VECM

Abstract

This study aims to analyze the integration of the Arabica and Robusta coffee markets in Indonesia and world coffee prices. The study uses secondary data in the form of annual time series data from 1985-2015. The study uses the VECM analysis method. This method explains the relationship between long-term dynamic and short-term equilibrium in a system of equations. The analysis shows that Indonesian and world Arabica coffee did not integrate into the long term or the short term. In Robusta coffee, VECM estimation shows that there is the significant at the 10% level in a long-term relationship with a value of 0.086. It 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.

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Published

2020-07-28

How to Cite

Napitupulu, H. O., Sa’diyah, A. A., & Mutiara, F. (2020). Integration of Indonesian coffee markets and world coffee markets. Journal of Agricultural Socio-Economics (JASE), 1(1), 13–23. https://doi.org/10.33474/jase.v1i1.7153

Issue

Vol. 1 No. 1 (2020): Journal of Agricultural Socio-Economics (JASE)

Section

Articles

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