Journal of Global Economics

Factors Affecting the Demand and Import of Indonesian Sugar

Abstract

Wahib Muhaimin and Dyana Sari

Sugar is one of the most important staple foods after rice Indonesia. Currently, sugar production cannot fulfill the demand for sugar in the country, so the government absorbs the lack of sugar by import. The purpose of this research is to analyze factors which influence the sugar demand and import in the country. This research is used econometrics model through the simultaneous system of functions with time series data of 1982-2013. Estimated model was conducted by Two-Stage Least Squares method. The research result is, Indonesian sugar demand (Dg) is influenced by sugar price (Pg), income level (ini) and sugar demand in the previous year (Dg1). Import of Indonesian sugar (Mg) is influenced by the difference between demand and production of Indonesian sugar (Dg-Qg), time, and sugar imports in the previous year