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

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  • Madhusudan Ghosh

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.

Suggested Citation

  • Madhusudan Ghosh, 2003. "Spatial Integration of Wheat Markets in India: Evidence from Cointegration Tests," Oxford Development Studies, Taylor & Francis Journals, vol. 31(2), pages 159-171.
    • Handle: RePEc:taf:oxdevs:v:31:y:2003:i:2:p:159-171
    DOI: 10.1080/13600810307426
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