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Spatial Integration of Wheat Markets in India: Evidence from Cointegration Tests

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  • Madhusudan Ghosh
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    Abstract

    Using the maximum likelihood method of cointegration, this paper empirically evaluates intra-state and inter-state spatial integration of wheat markets in India. The cointegration tests provide strong evidence in favour of spatial integration of the regional wheat markets. Even though the regional markets are geographically dispersed, the prices across different market centres within and across the selected states have exhibited long-run spatial linkages, suggesting that all the exchange locations are integrated and the prices provide relevant market signals. There are several implications of these results for agricultural price policy and food market liberalization programmes.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/13600810307426
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    Bibliographic Info

    Article provided by Taylor and Francis Journals in its journal Oxford Development Studies.

    Volume (Year): 31 (2003)
    Issue (Month): 2 ()
    Pages: 159-171

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    Handle: RePEc:taf:oxdevs:v:31:y:2003:i:2:p:159-171

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    Cited by:
    1. Katengeza, Samson P. & Mangisoni, Julius H. & Okello, Julius Juma, 2010. "The Role of ICT-based Market Information Services in Spatial Food Market Integration: The Case of Malawi Agricultural Commodity Exchange," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96170, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
    2. Katengeza, Samson P., 2009. "Malawi Agricultural Commodity Exchange And Spatial Rice Market Integration," Research Theses 117804, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Kadir Eryigit & Suleyman Karaman, 2011. "Testing for spatial market integration and law of one price in Turkish wheat markets," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(6), pages 1519-1530, October.
    4. repec:pid:journl:v:46:y:2007:i:4:p:1075-1084 is not listed on IDEAS
    5. A. Ganesh Kumar & Ashok Gulati & Ralph Cummings, Jr., 2009. "Reforming Foodgrains Management: Achieving Food Security with Cost-Effectiveness," Working Papers id:2172, eSocialSciences.

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