Abstract
In Indonesia, the increase in food prices usually results in the rise in the inflation rate. To cope with this problem, a better food distribution among regionsis absolutely required. This study aimed to describe the dynamics of food prices, to test the convergence level of food prices and to analyze the factors that influence the changes in food prices between regions in Indonesia. The data used were obtained from the Central Agency of Statistics and the Ministry of Agriculture from 2002 to 2010. The method used was analysis of dynamic panel data (First Difference-Generalized Methode Moment/FDGMM). The results of the study showed that all commodities of food prices were convergent, sugar at the highest level and rice at the lowest, while the factors that influence changes in food prices were production rate, Gross Domestic Product (GDP) and population. Keywords: Convergence, Food Prices, GMM Panel Data
Highlights
In Indonesia, the increase in food prices usually results in the rise in the inflation rate
This study aimed to describe the dynamics of food prices, to test the convergence level of food prices and to analyze the factors that influence the changes in food prices between regions in Indonesia
Economics and Management, Cornell University, New York
Summary
Setelah mempertimbangkan bobot dan sumbangan inflasi dari komoditas pangan pokok maka dalam penelitian ini diambil tiga komoditas untuk dibahas secara lebih mendalam, yaitu beras, minyak goreng dan gula pasir antar propinsi di Indonesia karena inflasi daerah mempengaruhi 78% terhadap inflasi nasional. Sehingga yang menjadi permasalahan utama yang dibahas dalam penelitian ini adalah bagaimana pergeseran pergerakkan harga apakah konvergen atau divergen dari tiga pangan pokok antar wilayah di Indonesia dan faktor-faktor yang mempengaruhinya
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