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Spatial integration of cotton markets in India-An application of vector error correction model

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  • Devi,I. Bhavani
  • Srikala, M.
  • Ananda, T.
  • Subramanayam, V.
  • Venkatesu, V.

Abstract

India is the world's second largest producer and consumer of coti on ati er China. Globally, the leading coti on exporters are India and the United States. The major coti on producing states in India are Maharashtra, Gujarat, Andhra Pradesh, Telangana, Haryana, Punjab, Karnataka, Rajasthan and Tamil Nadu. The major cotion markets selected were Adoni (Andhra Pradesh), Warangal (Telangana), Hanumangarh (Rajasthan) and Gondal (Gujarat). Atiainment of an effcient market performance is distributed by the extent to which price signals are transmitied across markets. The spatial market integration analysis indicated that all the market pairs exhibited bi-directional causality and prices were transmiti ed vice versa i.e., mutual influence was exerted by the markets on each other.

Suggested Citation

  • Devi,I. Bhavani & Srikala, M. & Ananda, T. & Subramanayam, V. & Venkatesu, V., 2015. "Spatial integration of cotton markets in India-An application of vector error correction model," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 29(2).
    • Handle: RePEc:ags:injagm:399504
    DOI: 10.22004/ag.econ.399504
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