RICE ECONOMIC MODEL IN NORTH SUMATRA

Abstract

This study aims to determine the development of rice consumption in North Sumatra and the factors that influence rice consumption in North Sumatra in 1988-2017. Data obtained from secondary data from the Central Statistics Agency and related agencies. Analysis used by Vector Auto Regression. Variables used in this study are income, rice prices, inflation, and rice consumption in North Sumatra. The analysis method used by Vector Auto Regression (VAR). The results showed that the dominant factors influencing rice consumption were the price of rice by 60% and inflation by 38%. On the other hand, the inflation variable can affect rice prices in the short term. Meanwhile, in the long term, the variables of income, rice prices in the previous period, consumption, and inflation