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Market integration between surplus and deficit rice markets during global food crisis period

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  • Akhter, Sabiha

Abstract

Applying the maximum-likelihood method of co-integration, this study analysed spatial market integration between an adjacent rice surplus market (India) and deficit markets (Bangladesh and Nepal). The main focus is on the government policies of these three rice-producing countries which have been imposed to reduce domestic price volatilities in rice markets during the recent ‘global food crisis’ in 2007–2008. The co-integration tests find that domestic rice prices of India, Bangladesh and Nepal are integrated both in short-run and long-run periods despite the imposition of export restriction policies by India. The reason that prices are transmitted so effectively is most likely to be the widespread informal cross-border trade through the porous borders among India, Bangladesh and Nepal.

Suggested Citation

  • Akhter, Sabiha, 2017. "Market integration between surplus and deficit rice markets during global food crisis period," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(1), January.
    • Handle: RePEc:ags:aareaj:301123
    DOI: 10.22004/ag.econ.301123
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    Cited by:

    1. Md. Fuad Hassan & Lukas Kornher, 2022. "Farm wage and Rice Price dynamics in Bangladesh," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 127-146, February.
    2. Chelanga, Philemon & Jensen, Nathaniel & Muendo, Kavoi Mutuku, 2022. "Pastoral livestock market integration amidst improvements in physical and communication infrastructure: Evidence from northern Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(4), December.

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    Keywords

    Industrial Organization;

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