The Effect of Farmer's Export, Import, and Exchange Rate on Value-Added of Agricultural Sector in Aceh Province, Indonesia

Abstract

As one of the agricultural countries, Indonesia's population is highly dependent on farming for a living. Thus, this study is written to analyze the relationship between farmers' exports, imports, and the exchange rate of farmers on the value-added of the agricultural sector in Aceh Province, Indonesia. This study uses secondary data from the Central Bureau of Statistics of Aceh Province. This study uses quarterly time series data from 2007 to 2021, as many as 60 data series. By using the multiple linear regression model with Ordinary Least Square (OLS), the results show a positive and significant relationship between the increase in the export value and the farmer's exchange rate towards the increase in the value-added of the agricultural sector in Aceh Province. Meanwhile, the imported variable does not show a significant relationship to the value-added agricultural sector in Aceh Province in this study. Taken together, the variables of exports, imports, and farmers' exchange rates significantly affect the agricultural sector's added value in the selected models.