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ID:
120231
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| Publication |
2013.
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| Summary/Abstract |
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 wholesale maize and soybean markets during the period 1992-2006. We measure the degree of integration across provinces using cointegration techniques and calculate average price differences and use regression analysis to understand the drivers of price differences and market integration. For rice and sugar, we find wide market integration and low price differences in the range of 5-12 per cent. For maize, soybeans, and cooking oil, we find less integration and higher price differences (16-22 per cent). Integration across provinces is explained by the remoteness and quality of transport infrastructure of a province. Price differences across provinces respond to variations in provincial characteristics, such as remoteness; transport infrastructure; output of the commodity; land productivity; and income per capita.
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| 2 |
ID:
141338
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| Summary/Abstract |
Entering and surviving in export markets is a costly process that involves learning about the existence of foreign demand, ‘discovering’ production costs, building up reputation, succeeding in product branding to reduce competitive pressures and to upgrade quality to serve demanding international clients, and remaining competitive in the marketplace. This article argues that tourism alleviates some of these costs by providing an inexpensive platform for cost discovery and by acting as an accessible ‘in-house’ trade fair for domestic producers. It combines product-level data on world and Nepal’s exports with Nepalese data on tourist inflows, and macro-indicators on relative prices. For tourism-related goods, it reveals a positive association between tourist inflows from given destinations with future merchandise exports to those destinations, while no association is found for goods unrelated to tourism. The results suggest spillovers from tourism into merchandise export performance and diversification and gains from cooperation between tourism and export promotion.
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