Market integration and price transmission in consumer markets of developing countries

Agricultural marketing remains a challenge; this is because a large proportion of the population is engaged in a form of small-scale agricultural production and marketing that is characterised by a multitude of constraints and market imperfections. Paramount among the constraints are limited land availability, poor physical and legal infrastructure, high transaction costs and few available and alternative livelihood support systems. For some of these constraints to be removed, there is the need for information flow. Thus, it is believed that, spatial price transmission or market integration measures, the degree to which markets at geographically separated locations share common long-run price or trade information on a homogenous commodity. Using the co-integration approach, the results of the study using either Techiman or Kumasi as the producer markets of maize, the following markets Bolga, Wa, Ho, Tamale, Mankesim, Koforidua, Accra, Cape Coast and Takoradi/Sekond (as consumer markets) shows that there is a long run price transmission relations with the consumer markets. However, Bolgatanga market is the only exception. It is recommended that the Ministry of Food and Agriculture should intensify collection and dissemination of data on maize prices to both consuming markets and producing markets. This can be enhanced by Government establishing market information centres in these markets where both traders and farmers could go for information on the price trend of the commodity in other market(s).Keywords: Co-integration; Marketing; Market Integration; Non-stationarity; stochastic process.

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Price transmission and market integration: vertical and horizontal price linkages for salmon

Applied Economics ◽

10.1080/00036840500486524 ◽

2007 ◽

Vol 39 (19) ◽

pp. 2535-2545 ◽

Cited By ~ 39

Author(s):

Frank Asche ◽

Shabbar Jaffry ◽

Jessica Hartmann

Keyword(s):

Market Integration ◽

Price Transmission

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MECHANIZATION OF POTATO GRADING ON SMALL-SCALE FARMS: A CASE STUDY FROM PERU

Experimental Agriculture ◽

10.1017/s0014479704002340 ◽

2005 ◽

Vol 41 (1) ◽

pp. 81-92 ◽

Cited By ~ 1

Author(s):

G. P. BUTLER ◽

T. BERNET ◽

K. MANRIQUE

Keyword(s):

Developing Countries ◽

Market Integration ◽

Low Cost ◽

Farming System ◽

Agricultural Products ◽

Small Scale ◽

Critical Aspect ◽

Small Scale Farmers ◽

Important Cash Crop

Potatoes are an important cash crop for small-scale producers worldwide. The move away from subsistence to commercialized farming, combined with the rapid growth in demand for processed agricultural products in developing countries, implies that small-scale farmers and researchers alike must begin to respond to these market changes and consider post-harvest treatment as a critical aspect of the potato farming system. This paper presents and assesses a low cost potato-grading machine that was designed explicitly to enable small-scale potato growers to sort tubers by size for supply to commercial processors. The results of ten experiments reveal that the machine achieves an accuracy of sort similar to commercially available graders. The machine, which uses parallel conical rollers, has the capacity to grade different tuber shapes and to adjust sorting classes, making it suitable for locations with high potato diversity. Its relatively low cost suggests that an improved and adapted version of this machine might enhance market integration of small-scale potato producers not only in Peru, but in other developing countries as well.

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The Theory of Agricultural Price Bubble & Price Crash in Global Economy

Applied Economics and Finance ◽

10.11114/aef.v6i5.4464 ◽

2019 ◽

Vol 6 (5) ◽

pp. 168

Author(s):

M.B. Dastagiri ◽

L. Bhavigna

Keyword(s):

Economic Theory ◽

Developing Countries ◽

Agricultural Land ◽

Wholesale Price ◽

Price Transmission ◽

Price Fluctuations ◽

Agricultural Prices ◽

Forecasting Models ◽

Price Bubble ◽

Agricultural Price

Agricultural prices play greater role in living Economics. Since many decades’ farmers faced declining agricultural prices and low prices in developing countries. Therefore, in these countries agricultural price policies are under closer appraisal. Government and policy makers worry about inflation. Economic precision is required in determining prices. This understanding led to conception of the study. The specific objectives are to review various agricultural price theories, research evidences and construct the theory of agricultural price bubble and crash and their effect on macro economy and suggest measures to improve. The study reviews various agricultural price theories, concepts, policies, research gaps and do meta-analysis and formulated the theory of Agricultural prices bubble and price crash. Since 1950, many development economists and practitioners prophesy in developing countries is that low agricultural commodities prices discourage poverty alleviation. Many countries are unable to make successful pricing policies due to there is not enough operative methodological and theoretical support for decision-making. According to the economic theory of cooperativism, the entities come closer to the pecking order theory. Unexpected changes and changes in regulations can have significant impact on the profitability of farming activities. “Demand channel" is the crucial factor in elucidation of commodity price growth. Future prices moments in agriculture have fat-tailed distributions and display quick and unpredicted price jumps. World Trade Organization study highlights the importance of strengthening multilateral disciplines on both import and export trade interventions to food price fluctuations to reduce beggar-thy-neighbor unilateral trade policy. The theory of NAFTA regionalism did not lead to regionalization and not increasing share of intraregional international trade. In EU countries land rents in modern agriculture causing upward trend in agricultural land prices. Information friction, agricultural supports, agricultural price & trade policies, agricultural price transmission are responsible price fluctuations. In economic theory, asymmetric price transmission has been the subject of considerable attention in agricultural gaps. Selection of forecasting models are based on chaos theory. Chaos in agricultural wholesale price data provides a good theoretical basis for selecting forecasting models. This theory can be applied to agricultural prices forecasting. Novelties in agricultural products fluctuations research offer scientific basis in planning of agricultural production.

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Market Integration and Causality: An Application to the Major Apple Markets in India

Economic Affairs ◽

10.46852/0424-2513.1.2021.16 ◽

2021 ◽

Vol 66 (1) ◽

Author(s):

Shilpa S

Keyword(s):

Impulse Response ◽

Response Function ◽

Market Integration ◽

Impulse Response Function ◽

Price Transmission ◽

Fruit Crops ◽

Causality Test ◽

Additional Information ◽

Major Implication ◽

The Government

Market integration and prices of fruit crops such as apple play an important role in determining the production decisions of apple farmers. In this context, the present study examines the degree of spatial market integration and price transmission across five major apple markets of the country, viz. Shimla, Chandigarh, Delhi, Bengaluru and Mumbai by adopting Johansen’s Cointegration Test, Grangers Causality and Impulse Response Function. The outcomes of the study strongly buttress the cointegration and interdependence of the apple markets in India. To get additional information on whether and in which direction price transmission is occurring between market pairs, Ganger’s Causality Test has been used, which has confirmed Shimla to be the price determining market as it has causal relations with all the selected markets. The Impulse Response Function supported that all the selected markets responded well to standard deviation shock given to any other market. The major implication of the study is further improvement in market integration situation through dissemination of price and arrival data efficiently and developing communication means with in the markets by the government.

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