Abstract: This study aims to: (1) analyze the market integration of garlic commodities in West Nusa Tenggara Province; and (2) analyze the price transmission of garlic between surplus and deficit regions in the province. The research employed a descriptive method with a quantitative approach. The research areas were selected through purposive sampling based on specific objectives. The unit of analysis in this study is garlic marketing activities. The type of data used is secondary time-series price data. Data were collected from relevant institutions in the form of monthly time-series data on producer and consumer-level garlic prices in West Nusa Tenggara Province from 2021 to 2023.The results show that: (1) Spatial market integration of garlic exists in several regency/city, particularly between East Lombok Regency and North Lombok Regency, Bima Regency and Bima City, as well as Sumbawa Regency and Bima Regency. The strongest integration is observed between Sumbawa Regency and Bima Regency (r = 0.669; R² = 0.447), while moderate integration occurs between Bima Regency and Bima City (r = 0.524; R² = 0.274). (2) Vertical market integration between the garlic market in West Nusa Tenggara Province and East Lombok Regency is not integrated in the short term, as indicated by the IMC value of 223 (>1). However, long-term integration is strong, with the coefficient for current and previous garlic prices (d2) reaching 0.947 (>0.05). Similarly, vertical integration with Bima Regency is weak in the short term (IMC = 33 > 1), but shows strong long-term integration (d2 = 0.948 > 0.05). These findings indicate that overall market efficiency has not yet been achieved, especially in the short term. (3) Price transmission elasticity is elastic and statistically significant in several cases: between East Lombok and North Lombok (ET = 4.045; sig. = 0.012), North Lombok and East Lombok (ET = 1.437; sig. = 0.012), Bima Regency and Bima City (ET = 1.310; sig. = 0.001), Bima City and Bima Regency (ET = 2.776; sig. = 0.001), as well as between Bima and Sumbawa Regencies (ET = 1.149; sig. = 0.000) and vice versa (ET = 1.944; sig. = 0.000). These relationships demonstrate strong market linkages, where price changes in one market significantly affect others. On the other hand, some relationships are categorized as inelastic, such as from East Lombok to the provincial level (ET = 0.629; sig. = 0.226) and from Bima Regency to the provincial level (ET = 0.805; sig. = 0.000). Elasticity values below 1 in these cases indicate that price changes at the producer level are not fully transmitted to the consumer level.
Keywords: Garlic, Market Integration, Price Transmission.
Title: Analysis of Market Integration and Price Transmission of Garlic in West Nusa Tenggara Province
Author: Baiq Devira Afriani, Edy Fernandez, Dwi Praptomo Sudjatmiko
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 13, Issue 1, April 2025 - September 2025
Page No: 280-291
Research Publish Journals
Website: www.researchpublish.com
Published Date: 15-July-2025
