Determinants of Market Integration and Price Transmission in Indonesia
This paper investigates the determinants
of price differences and market integration among Indonesian
provinces, using data from retail cooking oil, rice and
sugar markets during the period 1993-2007, and from
wholesale maize and soybean markets during the period
1992-2006. The authors measure the degree of integration
using co-integration techniques, and calculate average price
differences. They use regression analysis to understand the