Evaluating the effects of domestic policies and external factors on the price competitiveness of Indonesian crops

cassava, soybean, corn, and sugarcane

This paper presents a framework for analyzing the contributions of government policies and exogenous (mostly, external) factors to the observed changes in the relative price of a tradable agricultural product. A decomposition analysis is undertaken on the changes in price competitivness of four major nonrice crops in Indonesia between subperiods during 19870-1994. An important conclusion is that, after the attainment of rice self-sufficiency, Indonesian policies have not promoted crop diversification on a “level playing field.”

Bautista, Romeo M.
San, Nu Nu.
Swastika, Dewa.
Hermanto, Bahri Sjaiful
Published date: 
International Food Policy Research Institute (IFPRI)
Series number: 
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