Using Alchian Allen Theorem to Explore Seafood Trade Connectivity in Indonesia

Abstract

The study empirically explored the Alchian-Allen proposition by applying it to Indonesia’s interregional seafood trade network. Seafood distribution center connectivity was analyzed by combining degree, betweenness, and accessibility indices with the Alchian-Allen theorem. Data were obtained from the Quarantine authority of the Indonesian Ministry of Marine Affairs and Fisheries. Our results showed that Surabaya, Jakarta, and Makassar are highest connectivity nodes in the seafood distribution network, as well as the market centers of seafood trade based on high reachability index values. This result supports the assumption of the Alchian-Allen theorem, stating that more high-quality seafood products are marketed outside their area of origin than on the local market.