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Testing For Philippines Rice Market Integration: A Multiple Cointegration Approach

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  • Param Silvapulle
  • Sisira Jayasuriya

Abstract

In this paper we demonstrate the use of Johansen's multiple cointegration technique as a test for spatial market integration. We argue that this technique overcomes many of the limitations of previous methods for testing market integration. An application of this approach to the Philippines rice markets indicates that these markets are generally well integrated in the long‐run with Manila as the dominant market. However, there are other inter‐regional relationships which are important in the short term.

Suggested Citation

  • Param Silvapulle & Sisira Jayasuriya, 1994. "Testing For Philippines Rice Market Integration: A Multiple Cointegration Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 369-380, September.
    • Handle: RePEc:bla:jageco:v:45:y:1994:i:3:p:369-380
    DOI: 10.1111/j.1477-9552.1994.tb00411.x
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