Asymmetric price transmission of Indonesian coffee

Almost all previous studies of Asymmetric Price Transmission (APT) only focused on speed perspective. The study aims to investigate the effect coffee prices in global market Indonesian producer magnitude, speed, and direction perspectives. This used data at level, world market, GDP for period 1980 2018. To examine behavior APT, we use NARDL model. results show that there is a nonlinear co-integration between market. APT occurs both long run short run. existence not but also magnitude sides. response higher faster when decrease. It indicates failure perform perfectly competitive structure Indonesia. If performance national economy stable, producers are more likely increase prices. However, economic recession, tend suffer welfare loss due negative shock Therefore, policymakers should focus growth has make some policies assessing perfect competition domestic agricultural markets.