| dc.description.abstract | One of the provinces which is the largest producer of red chilies in Indonesia is North Sumatra Province. Red chili production is spread across several districts, which will affect the market supply of red chilies. Red chilies are one of the agricultural commodities that contribute to inflation in North Sumatra, a price indicator for 5 cities, namely Medan, Pematang Siantar, Sibolga, Padangsidimpuan and Gunungsitoli. The aim of the research is to determine the development of red chili production and prices and analyze price integration between red chili producer markets in 5 (five) cities in North Sumatra Province. This research uses descriptive analysis methods and the Vector Error Correction Model (VECM) method. The research results show that overall, between production and demand for red chilies in North Sumatra, the condition is still in surplus. Prices between the Red Chili producer markets in Medan City, Pematang Siantar City, Padang Sidempuan City, Sibolga City and Gunung Sitoli City are perfectly integrated. There is a short term relationship between the price of red chilies in Medan and Gunung Sitoli, Pematang Siantar and Sibolga. Price of red chilies in Padang Sidempuan with Sibolga, Medan and Pematang Siantar. There is a long-term relationship between the price of red chilies in Gunung Sitoli and Medan, Padang Sidempuan, Pematang Siantar and Sibolga. The relationship that occurs between the red chili price variable is a causal relationship, indicating that there is one-way causality between the red chili price variable in Medan and the price of Pematang Siantar chili and the price of Sibolga chili | en_US |
