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Testing Onion Market Integration in Pakistan

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Author Info

  • Heman D. Lohano

    (Department of Agricultural Economics, Sindh Agriculture Economics, tando Jam, Sindh.)

  • Fateh M. Mari

    (Department of Agricultural Economics, Sindh Agriculture Economics, tando Jam, Sindh.)

  • Rajab A. Memon

    (Center of Rural Development Communication, University of Sindh, Jamshoro, Sindh.)

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    Abstract

    This paper analyses spatial market integration using monthly wholesale real price of onion in four regional markets located in each of the four provinces of Pakistan. Unit root test indicates that the price series in each location are stationary, and the series are represented as autoregressive model for eachlocation. The error correction model results show that the regional markets of onion have strong price linkages, and thus are spatially integrated.

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    File URL: http://www.pide.org.pk/pdf/PDR/2005/Volume4/717-728.pdf
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    Bibliographic Info

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 44 (2005)
    Issue (Month): 4 ()
    Pages: 717-728

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    Handle: RePEc:pid:journl:v:44:y:2005:i:4:p:717-728

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    1. Kling, Catherine L. & Sexton, Richard & Carman, Hoy, 1991. "Market Integration, Efficiency of Arbitrage, and Imperfect Competition: Methodology and Application to U.S. Celery," Staff General Research Papers 1609, Iowa State University, Department of Economics.
    2. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
    3. Pendell, Dustin L. & Schroeder, Ted C., 2004. "Spatial Market Integration In Regional Cattle Markets," 2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii 36265, Western Agricultural Economics Association.
    4. Vollrath, Thomas L., 2003. "North American Agricultural Market Integration And Its Impact On The Food And Fiber System," Agricultural Information Bulletins 33639, United States Department of Agriculture, Economic Research Service.
    5. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
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