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Analysis of Price Transmission on Coffee Export Markets in Indonesia and United States

LUCIK*, MOHAMMAD SALEH, TEGUH HADI PRIYONO AND RAFAEL PURTOMO SOMAJI
Department of Economics and Development Studies, Faculty of Economics and Business, University of Jember,
Indonesia
*(e-mail : lucik.soka@gmail.com; Contact : +6281231219007)
(Received : June 17, 2021; Accepted : August 22, 2021)

ABSTRACT

This paper revealed the transmission of coffee export prices between Indonesia and the United States.
The data analysis method in this paper used the Asymmetric Error Correction Model (AECM), with time
series data with a monthly period starting in 2016 Q1 – 2020 Q12. The result was that there was an
asymmetric relationship in the short term and there was a long-term asymmetric relationship between
the export price of Indonesian coffee and the price of US coffee. The existence of an asymmetric price
relationship in the long term indicated that there was a price game or an abuse of market power by
coffee exporters in Indonesia.
Key words : : Coffee, price transmission, AECM