Integration between the benchmarking market and the retail market for Curly Chili Commodities in Makassar City

Abstract

Market integration is related to marketing agencies which plays a role in connecting producers or traders with consumers. The chili trader as marketing agencies, caused price changes in the benchmarking market with prices in the retail market because the distribution of goods from the benchmarking market to the retail market take marketing costs and profits. It will cause the price of a commodity in one market to differ from another. This study aims to analyze the integration between the benchmarking market and the retail market. The data analysis technique used is the Index of Market Connection (IMC) analysis, the Stationarity Test, and the Cointegration Test. The results of this study indicate that the integration of the curly chili market between Terong Market and Toddopuli Market has an IMC value of 0.55 that indicates a high short-term market integrationMeanwhile, for Terong and Pabaeng-baeng Market, the IMC value was 1.11 indicating a low short-term market integration, so that Terong Market was not the main factor affecting the price formation in Pabaeng-baeng Market.