Analysis of Price Transmission along the Rice Supply Chain in Indonesia
64th ISI World Statistics Congress - Ottawa, Canada
Format: CPS Abstract
Keywords: asymmetric_price_transmission, nardl, welfare_transfer
Session: CPS 52 - Finance and business statistics VI
Tuesday 18 July 4 p.m. - 5:25 p.m. (Canada/Eastern)
This study aims to investigate asymmetric price transmission along the supply chain in Indonesian rice market (farmer, producer, wholesaler, retailer), and use the APT information to analyze the indication of welfare transfer. NARDL is used to see the difference in speed and magnitude of price transmission. The empirical results show the presence of positive APT along the supply chain, meaning that the response to price increases is greater than price decreases. There are indications of consumer welfare loss and wholesalers getting the greatest benefit from their dominance in creating additional profits from price changes triggered by the farmer level.