The Effects of Market Integration on Rice Market Performance and it’s Implication on National Food Security in Indonesia

Abstract

This research is aimed to assess the rice market performance by identifying the rice price, market and marketing situation nationally and domestically and factors that influence the rice market performance within the last ten years as well as its impact to the national food security level. The primary data was conducted by distributing the open- and close-ended questioners to the trade, famers, and agents. The Secondary data was collected from Central Bureau of Statistic (BPS) and Food Security Agency based on time series data. Structural Equation Modeling (SEM) applied to test the model that has been previously formed and at the same time examine all the hypotheses. Ultimately, this research finds that: (1) the market integration is significantly and positively influences the rice market performance in Indonesia. (2) The rice market performance also significantly and positively influences the national food security. (3) The integration of rice market also significantly and positively influences national food security.

Keywords: Market integration, Market performance, Food security