Covid-19 Pandemic and Volatility of Sugar Price at Regional Level in Indonesia for The Period August 2018-August 2021
Article Sidebar
Abstract
It is expected that the COVID-19 pandemic provides a significant impact on food price volatility in many products including sugar. The paper aims to analyze the price dynamic of sugar before covid (1st August – 2nd March 2020) and during the covid outbreak (3rd March – 31th August 2021) in all provinces in Indonesia by using the t-test and ARCH GARCH model. Based on Augmented Dickey-Fuller analysis before and during covid, the prices of sugar in Indonesia were stationary at the “first difference”. The results reveal that the prices of sugar in all provinces in Indonesia before covid was lower compared to during the COVID-19 pandemic. According to ARCH GARCH results, sugar prices were much more volatile in Riau, Jambi, West Java, East Nusa Tenggara, West Kalimantan, South Sulawesi, Central Sulawesi, and West Papua. As such, the government should focus to reduce the price volatility of sugar in these provinces.
Keywords: ARCH GARCH, COVID-19, sugar prices, stationarity, volatility
Authors
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).