Measuring Market Integration in the Presence of Threshold Effect: The Case of Bangladesh Rice Markets

Mohammad Jahangir Alam, Andrew McKenzie, Jeroen Buysse, Ismat Ara Begum, Eric J. Wailes and Guido Van Huylenbroeck

No 124435, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: Spatial price integration among five major Bangladesh rice markets is examined in the presence of threshold effects to account for the impact of transaction costs in the price adjustment process. Hansen and Seo (2002) threshold cointegration tests and threshold vector error correction models confirm the presence of threshold effects. Results highlight the importance of directing policy goals towards reducing transaction cost to engender greater pricing efficiency in Bangladesh rice markets.

Keywords: Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; International Development (search for similar items in EconPapers)
Pages: 27
Date: 2012-06-01
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:124435

DOI: 10.22004/ag.econ.124435

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