15 research outputs found
Analyzing Food Import Demand in Indonesia: An ARDL Bounds Testing Approach
No full textOver the last few decades, Indonesia has seen an increase in its food imports and continues to see steady increases due to changing consumer taste and preferences. The current study analysed aggregate food import demand and its determinants using annual data and the ARDL bounds testing approach to cointegration for the period 1984-2020. The Augmented Dicky-Fuller test was used to determine the order of integration of each variable which was found to be order 1 for all variables. The outcome of the unit root test suggested a possible cointegrating relationship between food imports and its determinants which was investigated using the ARDL bounds testing approach. The bounds test concluded that there exists a long-run equilibrium relationship between food imports and its determinants. In both time horizons relative prices, exchange rate and domestic production were found to negatively affect food imports while real income had a positive effect. Food imports for Indonesia was found to be price-inelastic in both time horizons. In addition, imported was found to be a luxury good with income elastic demand in both time horizons. Food import demand was found to be most responsive to changes in real income and domestic production during the study period. The adjustment parameters also suggest that around 92.4% of short- to long-run disequilibrium is corrected each year. Finally, the study suggested that policies to control excessive food import quantity in Indonesia can include setting import quota, giving subsidies to farmers, applying taxes to specific food items and devaluation of currency
Analyzing Meat and Seafood Import Demand in Trinidad and Tobago Using the Linear Approximate Almost Ideal Demand System Model
No full textA linear approximated almost ideal demand system model is specified to estimate imported meat and seafood demand in Trinidad and Tobago for the period 1976 to 2019 using annual data. Model parameters were estimated using seemingly unrelated regression with theoretical restrictions imposed. The results found that own-price of imported poultry and seafood negatively affected import expenditure share while own-price positively affected import expenditure share for imported beef, pork, and mutton. In addition, income negatively affected the import expenditure share of imported beef but positively affected the import expenditure share of imported pork, poultry, seafood, and mutton over the study period. Expenditure elasticity for imported meats and seafood reveals that they are all normal goods. Imported beef, pork, poultry, seafood, and mutton had expenditure elasticities of 0.57, 1.13, 1.94, 1.12, and 1.05, respectively. Imported pork, poultry, seafood, and mutton were found to be luxuries with income-elastic import demand. Own-price elasticities reveal that imported poultry was the most import elastic with an own-price elasticity of 1.40, followed by imported seafood (1.22), beef (0.65), mutton (0.54), and pork (0.48). Cross-price elasticities revealed that various complementary and substitution relationships existed among imported meats and seafood over the study period. Hicksian cross-price elasticities showed that mostly substitution relationships existed between various pairs of imported meats and seafood. The study also highlighted some policy recommendations that can be derived from the results
An error-corrected linear approximate almost ideal demand system model for imported meats and seafood in Indonesia
No full textThe use of static-demand systems in empirical analysis assumes that consumers adjust immediately to a new long-run equilibrium path when a shock is encountered. However, adjustment is not always instantaneous. This paper utilizes an Error-Corrected Linear Approximate Almost Ideal Demand System (EC-LAAIDS) model to analyze the import demand for meat and seafood in
Indonesia from 1976 to 2020 using annual data. The study found that the theoretical restrictions of homogeneity and symmetry held in the EC-LAAIDS model but did not in the long-run model. The adjustment parameter reveals that imported mutton had the slowest adjustment to long-run equilibrium, while all other meats and seafood had a moderate adjustment speed. The study calculated income elasticities for both the short- and long-run revealing that imported beef was a luxury good in the short-run and most responsive to changes in income. In the short-run, imported poultry was the least responsive to changes in income. In the long-run, all imported meats were found to be luxuries except for imported seafood and beef. Uncompensated price elasticity of demand reveals that in the short-run all imported items had inelastic demand except for imported beef which had elastic demand. In the long-run, however, imported beef and pork had elastic demand, while all other items were inelastic. Compensated cross-price elasticities found that mostly substitution relationships existed among pairs of imported commodities. Finally, a few policy suggestions were discussed, such as production subsidies to producers.</p
Dynamic analysis of Caribbean food import demand
No full textShort- and long-run price and income elasticities are generally unavailable at the regional level for major imported food groups for the Caribbean. These elasticity measures are needed to enhance policymaking. This paper therefore seeks to determine the income, own-price and cross-price elasticities of eight major imported food groups. This will show the relationships between income and price changes on the import quantities for the major food groups. This was done using an error-corrected linear approximate almost ideal demand system (EC-LA-AIDS) for the period 1961–2021, using annual data. The study found that the theoretical restrictions of homogeneity and symmetry did not hold in the static LA-AIDS model but did in the EC-LA-AIDS model. The speed of adjustment parameter in the EC-LA-AIDS model revealed that imported beverages had the slowest adjustment to long-run equilibrium while all other imported food categories had a moderate adjustment speed. The study also derived short- and long-run income and price elasticities of import demand for the eight imported food categories. In both time horizons, income elasticities revealed that all imported food categories were normal goods. In both time horizons, imported meat and seafood, and sugar and honey were the most responsive to changes in income, while spices and tea was the least responsive. Own-price elasticities revealed that all imported food categories were import price inelastic except for meat and seafood which was found to be import price elastic in both time horizons. Additionally, cross-price elasticities unveiled various substitution and complementary relationships between pairs of imported foods. The study not only contributed empirical insights into the import demand dynamics of the Caribbean, but also emphasized significant policy implications arising from the research findings
Estimating Household Price and Income Elasticities for Animal-Sourced Food: The Case of Bengkulu Province, Indonesia
No full textBengkulu is one of the provinces in Indonesia where household protein consumption is still below the national protein recommended allowance. This paper examines the effect of price, income and socio-demographic factors on household demand using the Quadratic Almost Ideal Demand System (QUAIDS) model and data from the Indonesian National Socio-Economic Survey (Susenas) in March 2021, which includes 5,079 households. The QUADS parameters were estimated using the Iterated Nonlinear Seemingly Unrelated Regression technique with theoretical restrictions imposed. The estimated parameters from the model were utilized to derive price and income elasticities for animal-derived foods. Empirically, it was found that fish is the most elastic animal-sourced food with a demand elasticity of 4.44%, followed by beef (2.78%), milk (1.94%), poultry (1.54%), and eggs (0.82%). Fish substitutes for beef, chicken, and eggs when prices increase but is complementary to milk. Four animal-sourced food groups, namely fish, beef, milk, and poultry, are luxury items, with income elasticities of 2.57%, 2.39%, 2.22%, and 1.36%, respectively. In contrast, eggs were found to be a normal good with an income elasticity of 0.53%. Fish and beef are very elastic; thus, the government can use pricing strategies and implement policy to increase poultry and eggs production so that daily protein requirements of 57 grams per capita per day are reached in Bengkulu province
Green finance as a catalyst for innovation and sustainability: A perspective for a low-carbon economy
No full textThe present study examines the crucial role of green finance in promoting various types of innovations that contribute to sustainable development and mitigate climate change. This study offers a comprehensive perspective on the role of green finance in multiple types of innovations, an area that has been previously studied in a fragmented manner. It addresses the gap in the literature where the role of green finance and innovations has been examined in isolation rather than in an integrated manner. The study conducted a comprehensive review of 243 articles to synthesise existing knowledge on the relationship between green finance and innovations. The study develops insights by identifying barriers and proposing strategies to enhance the impact of green finance on businesses. The study provides strategies to overcome these barriers and offers insights for stakeholders, including businesses, financial institutions, and policymakers, on promoting green finance-led innovations to achieve a low-carbon economy
Assessing the Welfare Effects of Rising Prices of Animal-Derived Sources of Food on Urban Households in Indonesia
No full textAnimal-derived food is a major source of protein for urban households in Indonesia. Rise in animal-derived food prices reduces consumption, causing households to consume less food than the recommended amount which can lead to serious health deficiencies that has serious implications for health and well-being in the long-run. The effects of rising prices of animal-derived protein source on urban households’ welfare is examined in this study. The Quadratic Almost Ideal Demand System model is used to analyze household consumption patterns, while the welfare effects of rising prices is measured using compensating and equivalent variation. The data for this study came from the 2021 National Socio-Economic Survey (Susenas), which included 112,569 households. Price elasticity of demand reveals that fish was the most responsive to changes in price while eggs were the least. Based on income elasticity of demand, all animal-derived sources of protein were found to be luxurious except for eggs which were found to be a normal good. The welfare exercise found that increase in prices resulted in approximately Rp. 23,262 per month in welfare loss when there is no substitution. However, when there is substitution, welfare loss as measured by CV was Rp. 22,308 and EV was Rp. 21,052 per month. Urban households were found to experience the most welfare loss from price increase of eggs but the least from fish. It was also found that when urban households are able to substitute when prices increase, the welfare impact is smaller than when they are not able to do so. Hence, policy aimed at diversifying urban households’ consumption patterns when it comes to protein consumption is suggested as a means of attaining protein food and nutrition security
Exploring income-based disparities in plant based protein consumption: Evidence from indonesia using probit analysis
No full textIn light of the global shift towards sustainable dietary patterns, this study investigates the influence of income on the consumption of plantbased proteins, namely tofu and tempeh, in Indonesia. This research uses probit regression analysis to examine the probability of consumption relative to income levels and household sizes among diverse demographic segments. Data from a nationally representative survey indicate that income significantly affects dietary choices, with higher-income households exhibiting varied likelihoods of consuming tofu and tempeh. The study finds that household size inversely affects tofu consumption, particularly among the affluent, while tempeh’s consumption is less sensitive to income and household size variations. These results underscore the complex interplay between economic status and food choices, with implications for policy measures to promote nutritional equity. Recommendations include price stabilization for tofu to ensure affordability across income strata and targeted educational campaigns to enhance awareness of tempeh’s nutritional benefits. The study contributes to the discourse on addressing dietary disparities and enhancing public health nutrition in a developing country
Analyzing The Cost of Paddy Rice Labor in Indonesia: A Case Study in Ten Tons Syngenta Project
No full textRice is a commodity strategy and a basic food for nearly all Indonesian households. The purpose of this study is to describe the labor utilization and costs associated with all farming activities, as well as the income and efficiency of lowland rice farming. The study took place in the Ten Tons Syngenta area, specifically in Glanggang Village, Beji District, Pasuruan Regency, East Java. The study took place between August and September 2022. The sample was determined using a 20% random sampling technique, which in the collection of 22 samples of farmers. The research data were derived from primary sources and were gathered through direct interviews with farmers. The results indicated that labor costs is so high in land preparation and planting (53.50 percent) dominated work in lowland rice farming, followed by harvesting (17.37 percent), weeding (14.74 percent), fertilizing (8.92 percent), and spraying (5.4 percent ). Lowland rice farmers earn Rp. 5,381,567 per hectare and have an R/C ratio of 1.35. The application of advanced technology, particularly in land preparation and planting, is critical for increasing the income and efficiency of lowland rice farming in the Syngenta ten-ton area in order to support rice self-sufficiency in the run-up to Indonesia's 100th anniversary of independence in 2045
