Abstrack:
Rice is a basic commodity for the majority of the Indonesian population. With the characteristics of different regions, there is a surplus and deficit conditions of the commodity that causes the flow of commodities between regions. Road transportation plays an important role in the transport of goods between regions commodities, especially inside the islands. This study intends to examine the effect of road quality against rice prices in Indonesia. In addition to road conditions, the characteristics of the area are reviewed as well as producing region or not, assuming the surplus area will have a lower price level because transport distances closer. Analysis tool used is the econometric approach, with price as the dependent variable and condition of road infrastructure as well as the characteristics of the area as a regional staple surplus or deficit as the independent variable. The data used are cross section data in the provincial base. The model will be analyzed with a structured approach to Ordinary Least Square (OLS). Model is selected which has the best value of testing by testing first-order test (R2 value, the value of t). The results showed that the stable of road infrastructure has a significant role in reducing the cost of delivery of rice compared to unstable conditions, by a margin of Rp1, 988 per km. Stable road infrastructure will also enhance the competitiveness of f the production areas, so as to reduce the price of Rp532,91 per kg compared to Rp275,657 in production areas with road conditions are not stable.
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