IDEAS home Printed from https://ideas.repec.org/a/sag/seajad/v8y2011i2p101-114.html
   My bibliography  Save this article

The Spatial Integration of Vegetable Markets in Nepal

Author

Listed:
  • Rojani Mishra

    (Govinda Ballav Pant University of Agriculture and Technology)

  • Anil Kumar

    (Govind Ballabh Pant University of Agriculture and Technology, India)

Abstract

This paper analyzes the spatial integration of vegetable markets in Nepal using weekly wholesale price and retail price data for three years. The maximum likelihood method of cointegration developed by Johansen (1988) was used in the study, which specifically examines if inter-regional vegetable markets are integrated and linked together into a single economic market. The dynamics of short-run price responses were examined using the vector error correction model (VECM). The results indicated that the higher the perishability, the lesser the integration was among wholesale markets and among retail markets of different vegetables. By examining the short-run price adjustment, it was found that almost all vegetable markets reacted on the long-run cointegrating equations while the speed of price adjustment in the short-run was almost absent. Moreover, it was found that the longer the distance between markets, the weaker the integration was. To increase the efficiency of vegetable markets in Nepal, there is a need to focus on building an improved market information system. This system should be able to disseminate timely market information about price, demand, and supply of products to enable producers, traders, and consumers to make proper production and marketing decisions.

Suggested Citation

  • Rojani Mishra & Anil Kumar, 2011. "The Spatial Integration of Vegetable Markets in Nepal," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 8(2), pages 101-114, December.
    • Handle: RePEc:sag:seajad:v:8:y:2011:i:2:p:101-114
    as

    Download full text from publisher

    File URL: https://ajad.searca.org/article?p=298
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sag:seajad:v:8:y:2011:i:2:p:101-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benedict A. Juliano (email available below). General contact details of provider: https://edirc.repec.org/data/searcph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.