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Market Integration In Wholesale Maize Markets In Pakistan

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  • Tahir MUKHTAR
  • Muhammad Tariq JAVED
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    Abstract

    This study tests long-run spatial market integration between price pairs of maize in four regional markets of Pakistan using cointegration and Error-Correction Model (ECM) approach. Hypotheses tests of market integration and causality are conducted using monthly wholesale maize prices in logarithmic form over the period from January1995 to December 2005. The results show that the regional markets of maize have strong price linkages and thus are spatially integrated. Lahore market dominates with price formation in the other three regional markets.

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    Bibliographic Info

    Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

    Volume (Year): 8 (2008)
    Issue (Month): 2 ()
    Pages: 85-98

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    Handle: RePEc:eaa:eerese:v:8:y2008:i:8_13

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    Related research

    Keywords: Market Integration; Maize; Cointegration; Granger Causality;

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    1. Gloria Gonz´┐Żlez-Rivera & Steven M. Helfand, 2001. "The Extent, Pattern, and Degree of Market Integration: A Multivariate Approach for the Brazilian Rice Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 576-592.
    2. Goletti, Francesco & Babu, Suresh, 1994. "Market liberalization and integration of maize markets in Malawi," Agricultural Economics, Blackwell, vol. 11(2-3), pages 311-324, December.
    3. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
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