Open AccessIntegration Rice Price And Farmers Welfare With Error Correction Model Analysis
Author(s) -
Yogi Makbul
Publication year - 2019
Publication title -
archives of business research
Language(s) - English
Resource type - Journals
ISSN - 2054-7404
DOI - 10.14738/abr.79.7118
Subject(s) - indonesian , welfare , error correction model , short run , indonesian government , economics , government (linguistics) , economic interventionism , time series , intervention (counseling) , public economics , perspective (graphical) , agricultural economics , econometrics , microeconomics , statistics , mathematics , market economy , cointegration , political science , psychology , philosophy , linguistics , geometry , psychiatry , politics , law
This research analyzes the short- and long-term influence of rice prices on the welfare of Indonesian farmers using an error correction model. Drawing upon data from Indonesia's Central Bureau of Statistics, it reveals that rice prices exert significant positive short-run effects and no significant long-run influence on farmers' welfare. These findings extend or refine results from earlier studies that lack the time series perspective of our research. They also support policy intervention by the Indonesian government to increase farmers' welfare and assure food supply.