Analysis of Vertical Integration in the Rice Market in West Nusa Tenggara Province

Tri Yuliana Lopes, Suparmin, Dwi Praptomo Sudjatmiko, Muhamad Siddik, Taslim Sjah

Abstract: The objectives of this research are (1) To analyze vertical market integration in West Nusa Tenggara Province; (2) To analyze the price transmission of unhusked rice (GKP) at the producer level to rice prices at the consumer level in West Nusa Tenggara Province; (3) To analyze the price disparity between rice and unhusked rice in West Nusa Tenggara Province; (4) To analyze market efficiency at the provincial level in West Nusa Tenggara Province. The method used in this research is the quantitative descriptive method. The unit of analysis in this study is rice marketing in the Province of West Nusa Tenggara. The data sources used in this research are secondary time series data. Data was collected by obtaining it from related agencies, in the form of time series or secondary data which includes monthly data on rice prices at the producer and consumer levels in the Province of West Nusa Tenggara from 2016-2023. The results of the study show that the vertical market integration of rice in the Province of West Nusa Tenggara can be said to be weak in the short term because the IMC value is 8.3 > 1. In the long term, there is also weak market integration because the d2 value (the coefficient of the current and previous rice price variable) is 0.00 < 0.05. With weak market integration occurring in the short and long term, perfect market efficiency has not yet been achieved. The price transmission elasticity from producers (unhusked rice) to consumers (rice) is 0.549% < 1, meaning the elasticity is inelastic. The price transmission elasticity from consumers (rice) to producers (unhusked rice) is 1.175% > 1, meaning the transmission elasticity is elastic. In general, the disparity between rice prices and the prices of dry harvested unhusked rice (HGKP) in the Province of West Nusa Tenggara during the 2016-2023 period was relatively constant, but for the January-April period (the first planting season), the price disparity was relatively high compared to other months.

Keywords: Market Integration, Price, Transmission Elasticity, Price Disparity, Market Efficiency, IMC (Index of Market Connection).

Title: Analysis of Vertical Integration in the Rice Market in West Nusa Tenggara Province

Author: Tri Yuliana Lopes, Suparmin, Dwi Praptomo Sudjatmiko, Muhamad Siddik, Taslim Sjah

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Vol. 12, Issue 1, April 2024 - September 2024

Page No: 109-117

Research Publish Journals

Website: www.researchpublish.com

Published Date: 24-July-2024

DOI: https://doi.org/10.5281/zenodo.12805579

Vol. 12, Issue 1, April 2024 - September 2024

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Analysis of Vertical Integration in the Rice Market in West Nusa Tenggara Province by Tri Yuliana Lopes, Suparmin, Dwi Praptomo Sudjatmiko, Muhamad Siddik, Taslim Sjah