Measuring Market Integration in the Presence of Threshold Effect: The Case of Bangladesh Rice Markets
AbstractSpatial price integration among five major Bangladesh rice markets is examined in the presence of threshold effects to account for the impact of transaction costs in the price adjustment process. Hansen and Seo (2002) threshold cointegration tests and threshold vector error correction models confirm the presence of threshold effects. Results highlight the importance of directing policy goals towards reducing transaction cost to engender greater pricing efficiency in Bangladesh rice markets.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124435.
Date of creation: 01 Jun 2012
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market integration; rice markets; transaction cost; Bangladesh; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; International Development;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
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