AN EMPIRICAL STUDY OF THE SPATIAL DEMAND AND MARKET AREA: THE CASE OF MARKET PLACES IN PADANG CITY

Suryani, Yosi and -, Sjafrzal (2015) AN EMPIRICAL STUDY OF THE SPATIAL DEMAND AND MARKET AREA: THE CASE OF MARKET PLACES IN PADANG CITY. Internasional Journal of Physical and Social Science (IJPSS), 5 (9). pp. 640-654. ISSN 2249-5894

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Abstract

ABSTRACT This study aims to analyze the role of location and distance in determining the spatial demand for goods, and then determines the size of market areas that can serve better the local customers. Furthermore, it also analyzes the role of local government in determining the location of the market areas to improve the function of traditional markets places managed by the government of Padang city. The data used are primary (questionnairesutilized to interviewed the consumers) as well as and secondary ones. The empirical findings on estimated spatial demand function for each of the nine markets are considerable good. Beside the conventional variables of market prices and household incomes, the variable of distance which is the main element of the spatial demand functionare found all highly significant. But the positive sign of distance need some explanations. When distance from the household to the market place is relatively far, the consumers tend to buy more goods to be consumed for several days to avoid daily visit the market place. Oppositely, whenthe distance is relatively short, the consumer tends to buy limited goods because they can visits the market place every day to get fresh foods. The sign of income coefficient varies in accordance to types of commodities bought. Normal goods have positive sign, but the inferior goods have negative signs (Engle’s law). Calculating of the market boundaries are conducted to determine the maximum covered households that can served by each market area. The results indicate that the existing market area in Padang City is still not optimal yet. This suggests that some adjustments of location of the existing market places areas are needed as well as constructing some new market places. Therefore, this study provides a new distribution of market places for Padang City based on the calculation of market areas. Keywords: Spatial Demand, Market Area, and Market Boundaries

Item Type:Article
Subjects:C Social Sciences > CB Economic Theory
Divisions:Jurusan Administrasi Niaga > Prog.Studi Administrasi Bisnis-D3 > Journal, Proceeding
ID Code:2440
Deposited By:Mr. OP Repo-1 Puskom
Deposited On:27 Apr 2018 08:09
Last Modified:27 Apr 2018 08:09

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