ANALISIS INTEGRASI PASAR BAWANG PUTIH MENGGUNAKAN METODE VECTOR ERROR CORRECTION MODEL (VECM) (STUDI KASUS : HARGA BAWANG PUTIH DI KOTA PONTIANAK)

Abstract

Spatial market integration is the level of closeness of relations between regional markets and other regional markets. In vertical market integration is the relationship between marketing agencies with other marketing agencies in marketing. Spatial market integration in the price of garlic at the market level for the Pontianak city area can be implemented using the Vector Error Correction Model (VECM) to see the relationship of garlic prices in the market in the long run. The data used are daily data from November 2019. Based on Johansen's Cointegration test, a long-term relationship is obtained in all markets in Pontianak and can be used in analyzing the VECM model. This study it can be concluded that the garlic market in Pontianak is not all spatially integrated. This happens because the big traders in the city of Pontianak have a very large share in the price agreement in the big market in the city of Pontianak.

Keywords: Market Integration, Johansen Cointegration Test, VECM, Granger Causality Test