Analysis Price Transmission of Cayenne Pepper In South Sulawesi Province

This study aims to analyze the price transmission of cayenne pepper in South Sulawesi. This study uses a quantitative approach and is implemented in Enrekang and Maros Regencies, Location determination is done purposively. from February to March 2018. This study uses secondary data obtained from various government agencies in South Sulawesi. The data analysis used is the analysis of price transmission. The results showed that the price transmission that occurred in South Sulawesi in the long run had an IMC valuegreater than 1, so that the price in the local market (Maros Regency and Enrekang Regency) with prices in the reference market (Makassar City) was not integrated, This indicates that any price changes that occurred in the reference market (Makassar City) in the previous week did not affect the price of cayenne pepper at the local market level (Maros Regency and Enrekang Regency). While the price transmission in South Sulawesi is short-term integrated high for Enrekang Regency. This is because the value of b2 is close to 1 so the difference in price in the previous week in Enrekang Regency influences price formation in the reference market (Makassar City), Whereas in Maros Regency it was integrated low, which caused that the price difference in the previous week did not affect the formation of market prices in Makassar City.