Does Agricultural Zoning Policy Impact on Price Spatial Dependence?: Red Chili Pepper Price In Java Island During COVID-19 Pandemic

Abstract

A sustainable equal distribution of price stability is the goal of agricultural zone policy. By performing an empirical study comparison of the districts on Java Island, 2,066 before and after the implementation of the policy, this research aims to demonstrate it. The spatial effects of agricultural zone policy on red chili pepper price are used to measure the policy’s impact. The findings of the estimation revealed that the price of red chili peppers, which serves as a gauge of the degree of spatial dependence, is significantly influenced by factors related to the world economy. Once the COVID-19 pandemic policy was put into place, there has been a strengthening of spatial dependence, and the price variations of red chili peppers in the agricultural development zone are relatively better than in the others.