ANALYSIS OF FACTORS AFFECTING RICE IMPORTS IN INDONESIA
2019
Kurniawan P. | Safrida | Mustafa
Indonesia is an agricultural country with a large portion of its income derived from rice farming. However, Indonesia still imports rice from abroad, even exceeding 1 million tons in 2016. The purpose of this study analyzes the variables of domestic rice productivity, domestic rice demand, domestic rice prices, foreign rice prices and foreign exchange rates that affect Indonesian imports. The analytical method used is an explanatory method to test the hypothesis of a simultaneous relationship between the variables studied. The model in this study uses simultaneous models with two stage least square (2SLS). The results showed that domestic demand for rice and domestic rice prices had a positive effect on imports. Meanwhile, domestic rice productivity, prices of foreign rice and foreign exchange rates have a negative effect on rice imports.
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