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Maize Price Differences and Evidence of Spatial Integration in Malawi: The case of selected markets

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  • Nyongo, Lovemore

Abstract

This study tests the long-run and short-run integration of maize markets in Malawi using the co-integration approach within the Vector Autoregressive modeling framework. The analysis is extended to Wald-F Granger Causality tests to see the direction of causality between maize markets. A total of six maize markets, two from each region, were analyzed. Three are urban markets, while two of the three rural markets are border markets. The study uses monthly maize retail prices for the period January 2000 to May 2008. Study findings show that nine out of the fifteen market pairs are integrated in the long-run, but the degree of short-run market integration is low, implying that the transmission of price information is slow.

Suggested Citation

  • Nyongo, Lovemore, 2014. "Maize Price Differences and Evidence of Spatial Integration in Malawi: The case of selected markets," MaSSP working papers 3, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:masspp:3
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    References listed on IDEAS

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    6. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
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    More about this item

    Keywords

    MALAWI; SOUTHERN AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; maize; Prices; Markets; Market integration; co-integration; transaction costs; price transmission;
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