INTEGRATION OF COCONUT PRODUCTION IN WEST KALIMANTAN

Maswadi Maswadi, Novira Kusrini, Dewi Kurniati, Wanti Fitrianti, Joshua Parulian

Abstract


Coconut (Cocos nucifera L.) is one of the most developed plantation commodities in West Kalimantan. However, the coconut has a problem with the structure of agribusiness, namely the alignment (integration) that is closely related to the availability of the coconut. This research aims to see the level of proximity of coconut regional market relationship with other regional markets in West Kalimantan represented by Bengkayang Regency, Mempawah, and Sambas district, which analyzed using vector autoregression (VAR) to examine the long-term relationship.  The integration of coconut production in Bengkayang, Mempawah, and Sambas districts was analyzed using the Granger causality test. The data used is the annual quantitative secondary data for 14 years in the time range between 2004 and 2017, which must be stationary at the first difference level. This study showed that West Kalimantan's production experienced some two-way causality relationship and some only one way. Production of Bengkayang affects Sambas, but the production of Sambas does not affect the production of Bengkayang. This finding indicates a one-way causality relationship. It is suggested that the government needs to add and improve infrastructure facilities for market players, and market players must follow production method information through electronic media or related institutions (for example, Department of Agriculture). 


Keywords


market integration, granger causality test, coconut, vector autoregression (VAR)

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DOI: https://doi.org/10.20961/sepa.v18i1.42482

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