Analysis of Horizontal Integration of Corn Markets in West Nusa Tenggara

Abstract: Corn is one of the leading commodities in the agricultural sector of West Nusa Tenggara (NTB) Province and exhibits price linkages across markets. This study aims to analyze the horizontal integration of corn markets and identify reference markets in NTB Province. The data used are secondary data on weekly retail-level corn prices from seven regencies/cities covering the period from January 2021 to December 2023. Market integration was analyzed using the Vector Error Correction Model (VECM), while reference markets were identified using Variance Decomposition. The results show that horizontal integration of corn markets in the long run occurs across six areas, namely Mataram City, East Lombok, Dompu, Sumbawa, Bima City, and Bima. In the short run, Tente Market in Bima Regency and Aikmel Market in East Lombok Regency each influence three other market areas. The results of the Variance Decomposition analysis indicate that Aikmel Market, Seketeng Market in Sumbawa Regency, and Tente Market serve as reference markets in the formation of corn prices in NTB. These findings provide information on inter-market price linkages that can serve as a consideration in formulating corn price stabilization policies in NTB Province. Keywords: Market Integration, Corn, VECM, Variance Decomposition, Reference Market. Title: Analysis of Horizontal Integration of Corn Markets in West Nusa Tenggara Author: Muhammad Amien Jundi, Suparmin, Muhamad Siddik International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 14, Issue 3, July 2026 - September 2026 Page No: 346-363 Research Publish Journals Website: www.researchpublish.com Published Date: 21-September-2026 DOI: https://doi.org/10.5281/zenodo.22871196 Paper Download Link (Source) https://www.researchpublish.com/papers/analysis-of-horizontal-integration-of-corn-markets-in-west-nusa-tenggara