This study aims to assess the price transmission elasticity of Madurese tobacco in Pakong District, Pamekasan Regency, relative to national prices, and to examine the integration of the Madurese tobacco market between rural areas in Pakong District and the national market. Subjects were selected purposively, involving 30 farmers in three villages: Cen Lecen, Lebbek, and Bicorong. The data analysis methods used were price transmission elasticity analysis and market integration. The results showed that of the three villages studied, only Cen Lecen Village had a price transmission elasticity value greater than one (>1). This means that farmers in that village benefit more from price changes. In contrast, the other two villages, Lebbek and Bicorong, had price transmission elasticities less than one (<1), indicating that they benefit less from price changes. Vertical market integration for Madurese tobacco is quite strong across all markets in Pakong District. Meanwhile, short-term market integration only occurs in a few villages. This is indicated by an Index of Market Connection (IMC) value greater than one (>1), indicating that the national market as a whole is not integrated with the local market in the short term. However, for long-term integration, each village has an integrated link with the national market.
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