Extent of market integration in major castor markets of India

Pooja Nautiyal, Ganga Devi and Mohit Kumar

Indian Journal of Agricultural Marketing, 2023, vol. 37, issue 1

Abstract: The present study was carried out in the major nine markets of castor in India. The relevant data were collected from diff erent government sources for a period of fifteen years i.e. 2005–06 to 2019–20. The major analytical tools viz., Augmented Dicky Fuller test, Johansen co-integration, Granger causality test and Vector error correction model were used for this study. The price series in all the selected markets were found to be integrated at first order. The results of trace test indicated that trace statistic values were greater than critical values in six cases. This implies that at most seven co-integrating equations were found significant at 5 per cent probability level. The results of Granger Causality test indicated that out of total 35 market pairs, 24 market pairs were related in a unidirectional way and 7 market pairs were related in bidirectional way. The Vector error correction model showed that the coeficient of error correction term was negative in case of Deesa, Kurnool, Nohar, Patan, Sumerpur and Yemmiganur markets which further means that the short term disturbances in these markets got corrected within one month and thus these markets quickly attained long run equilibrium. Furthermore, the information flow was more in Phalodi market.

Keywords: Marketing (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:injagm:399875

DOI: 10.22004/ag.econ.399875

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