How to Cite:
Hendro, N., Rahayu, E. S., & Fajarningsih, R. U. (2022). Analysis of price variations and
red chili market integration in Ciamis regency. Linguistics and Culture Review, 6(S1), 720-
730. https://doi.org/10.21744/lingcure.v6nS1.2151
Linguistics and Culture Review © 2022.
Corresponding author: Hendro, N.; Email: nananghendro@student.uns.ac.id
Manuscript submitted: 18 Oct 2021, Manuscript revised: 09 Dec 2021, Accepted for publication: 27 Jan 2022
720
Analysis of Price Variations and Red Chili
Market Integration in Ciamis Regency
Nanang Hendro
Department of Agribusiness, Postgraduate Program, Faculty of Agriculture,
Sebelas Maret University, Surakarta, Indonesia
Endang Siti Rahayu
Department of Agribusiness, Postgraduate Program, Faculty of Agriculture,
Sebelas Maret University, Surakarta, Indonesia
Rhina Uchyani Fajarningsih
Department of Agribusiness, Postgraduate Program, Faculty of Agriculture,
Sebelas Maret University, Surakarta, Indonesia
Abstract---Market integration can show that no matter what changes
occur in the consumer market, it will cause price changes in the
producer market. However, price information that has not been
properly channeled between consumer and producer markets makes
asymmetrical transmission and unintegrated market. This study aims
to analyze the level of price variation and market integration of red
chili in Ciamis Regency. The coefficient of variation analysis is used to
analyze the level of price variation and the Johansen cointegration
approach with the Vector Autoregression (VAR) / Vector Error
Correction Model (VECM) model to analyze market integration. The
results showed that the price fluctuation of red chili at the producer
and consumer level was high and unstable. The results of the analysis
of market integration show that there is market integration between
the producer market and the consumer market in the long run but in
the short term, they adjust to each other in the long term
Keywords---cointegration, market integration, red chilies, vector auto
regression (VAR), vector error correction model (VECM).
Introduction
The price of horticultural commodities always fluctuates and tends to increase.
This results in volatility in food prices and inflation. Price fluctuations for
agricultural commodities are caused, by natural disasters, seasonal production,