The Equilibrium Analysis of Consumption and Imports of Soybean in Indonesia

DOI

10.2991/icbmr-17.2017.10How to use a DOI?

Keywords

soybean consumption, soybean import, soybean price.

Abstract

This article aims to explain the influence and equilibrium of soybean price, per capita income and soybean import to soybean consumption in short and long terms in Indonesia. In addition, the effect and equilibrium of real exchange rate, per capita income and soybean consumption to soybean import in short and long-terms in Indonesia are also analysed. The study used time series data from 1986 to 2015, and utilized Co-integration Model and Error Correction Mechanism Model. There are four important findings from the study. First, the soybean price, per capita income and soybean import significantly affected the soybean consumption in Indonesia. Second, in the short-term, the soybean price and per capita income disrupt the equilibrium of soybean consumption, while in the long-term, the consumption of soybean will reach back to its equilibrium. Third, the real exchange rate, per capita income, and soybean consumption significantly affected soybean imports in Indonesia. Fourth, the real exchange rate and per capita income disrupts the soybean import in short-term, but it will reach back to its equilibrium in the long-term. Accordingly, it is strongly recommended for the Indonesian government to reduce soybean imports by increasing soybean production and establishing local soybean prices, so that the soybean farmers would feel advantaged.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hasdi Aimon
AU  - Melti Roza Adry
AU  - Zul Azhar
PY  - 2017/11
DA  - 2017/11
TI  - The Equilibrium Analysis of Consumption and Imports of Soybean in Indonesia
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2017)
PB  - Atlantis Press
SP  - 105
EP  - 114
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-17.2017.10
DO  - 10.2991/icbmr-17.2017.10
ID  - Aimon2017/11
ER  -