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Market Integration In Wholesale Maize Markets In Pakistan

Author

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  • Tahir MUKHTAR
  • Muhammad Tariq JAVED

Abstract

This study tests long-run spatial market integration between price pairs of maize in four regional markets of Pakistan using cointegration and Error-Correction Model (ECM) approach. Hypotheses tests of market integration and causality are conducted using monthly wholesale maize prices in logarithmic form over the period from January1995 to December 2005. The results show that the regional markets of maize have strong price linkages and thus are spatially integrated. Lahore market dominates with price formation in the other three regional markets.

Suggested Citation

  • Tahir MUKHTAR & Muhammad Tariq JAVED, 2008. "Market Integration In Wholesale Maize Markets In Pakistan," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 8(2), pages 85-98.
    • Handle: RePEc:eaa:eerese:v:8:y2008:i:8_13
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    References listed on IDEAS

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    1. Goletti, Francesco & Babu, Suresh, 1994. "Market liberalization and integration of maize markets in Malawi," Agricultural Economics, Blackwell, vol. 11(2-3), pages 311-324, December.
    2. Gloria González-Rivera & Steven M. Helfand, 2001. "The Extent, Pattern, and Degree of Market Integration: A Multivariate Approach for the Brazilian Rice Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 576-592.
    3. David A. Bessler & Jon A. Brandt, 1982. "Causality Tests in Livestock Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 140-144.
    4. 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.
    5. Francesco Goletti & Suresh Babu, 1994. "Market liberalization and integration of maize markets in Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 11(2-3), pages 311-324, December.
    6. Bob Baulch, 1997. "Testing for food market integration revisited," Journal of Development Studies, Taylor & Francis Journals, vol. 33(4), pages 512-534.
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    Citations

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    Cited by:

    1. Beag, F.A. & Singla, N., 2014. "Cointegration, Causality and Impulse Response Analysis in Major Apple Markets of India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(2).
    2. Abdul Ghafoor & Khalid Mustafa & Khalid Mushtaq & Abedullah, 2009. "Cointegration and Causality: An Application to Major Mango Markets in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(1), pages 85-113, Jan-Jun.

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    More about this item

    Keywords

    Market Integration; Maize; Cointegration; Granger Causality;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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