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Abstract

Indonesia's dependence on the international market causes garlic
prices to tend to fluctuate. Fluctuations in garlic prices tend to
follow the amount of production and available import supply.
Because Indonesia is an archipelagic country, garlic prices vary
in each province. The availability and demand for garlic in each
province are different, as well as fluctuations and disparities in
garlic prices between regions, which are driving factors for interregional trade, which indicates the integration of the garlic
market in Indonesia. The purpose of this study was to analyze
the determinants of spatial garlic market integration in
Indonesia. The types of data used are cross-section data on the
amount of garlic consumption by province, gross regional
domestic product by province, distance between reference and
follower provinces, amount of garlic production by province,
number of markets by province, length of paved roads by
province in 2020 sourced from the Central Statistics Agency and
Google Map. The analysis method used is multiple linear
regression. The results of the study indicate that the
determinants of spatial garlic market integration at the consumer
level in Indonesia are the amount of consumption of follower
provinces, gross regional domestic product of reference and
follower provinces, and the distance between reference and
follower provinces. Based on the results of the analysis, the
suggestion from this study is that to improve the efficiency of
garlic marketing in Indonesia, especially related to market
integration, the government needs to pay attention to the
determining factors of market integration.

Article Details

How to Cite
Sandra, I. K., Siregar, I. A., & Varwasih, M. W. (2024). DETERMINANTS OF SPATIAL MARKET INTEGRATION OF GARLIC IN INDONESIA. Journal of Agri Socio Economics and Business, 6(02), 279–296. https://doi.org/10.31186/jaseb.6.2.279-296