scholarly journals Market Integration and Price Transmission amongst the Major Wholesale and Retail Markets of Lentil (Lens culinaris / Lens esculenta) in India

2020 ◽  
Author(s):  
Aniketa Horo
Keyword(s):  
Market Integration ◽  
Unit Root Test ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Price Transmission ◽  
The Other ◽  
Causality Test ◽  
Retail Markets ◽  
Domestic Prices ◽  
Seasonal Indices

Background: India has become self-sufficient for cereal production but is still dependent upon pulse imports for fulfilling its domestic demands. These imports are very much capable of influencing the domestic prices, so the present study was undertaken to study the integration and price transmission amongst the major lentil producing states of India i.e. Madhya Pradesh, Uttar Pradesh, West Bengal, Bihar, Rajasthan and Assam. Methods: Out of these six states, altogether ten markets and all India average values were undertaken for the present study based on the quantum of lentil marketed and availability of data. The secondary data was collected from the Agmarknet portal for the lentil crop while Minitab and R software were used for the analysis of the retrieved data. Various techniques like Seasonal Indices (SI), unit-root test, Johansen's cointegration test and Granger causality test were applied to find the results and conclusions of this study. Result: The results have stated that the prices of these ten wholesale and retail markets are highly integrated and most of the markets have a uni-directional relationship with each other. The wholesale and retail markets of Jaipur and Lucknow have little/no relationship with the other markets while they have a bidirectional relationship between their own wholesale and retail market prices indicating that they might be the markets where prices are discovered, as they are not found to be influenced by the other spatially separated markets.

scholarly journals Enhanced Welfare through Market Integration: A Study of Growth, Variation and Price Integration of Chickpea

2020 ◽  
pp. 1-15
Author(s):  
L. Wahlang ◽  
M. K. Sekhon ◽  
Sunny Kumar
Keyword(s):  
Market Integration ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Optimal Level ◽  
Online Marketing ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
The Impact

Chickpea is the most important pulse in India. The present study is based on secondary data, worked out trends in production, seasonal variation and integration among major markets of India. Advance Econometrics analysis like Granger Causality test, Johansen Co-integration test and Vector Error Correction model were employed to examine the integration of markets. The trend in area and production shows fluctuations in major producing states except in Uttar Pradesh. In all the major producing states of chickpea, contribution of area was higher in production. The production trend improves in case of Madhya Pradesh whereas decreased in Rajasthan and Uttar Pradesh. Seasonality in arrivals has impacted the monthly retail price in all the selected markets. Out of six selected markets, five markets were having a long run price relationship. However, market integration has not yet reached an optimal level because all markets were not spatially integrated with one another in all the cases. The short run results indicated that chickpea’s markets were not well integrated. This could be due to poor market intelligence and unfavorable location of the markets. The policy intervention calls for strengthening market intelligent wing in all markets along with the establishing of online marketing system through computerization and networking. Strengthening of market infrastructure including transportation and communication facilities are the need of time in order to fully integrate the market prices. Concentration of marketing during the lean seasons helps reducing the impact of seasonality.

scholarly journals Foreign Direct Investment Led Growth Hypothesis and Economic Development in Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 376-393
Author(s):  
Ubong Edem Effiong ◽  
Nora Francis Inyang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Unit Root Test ◽  
Secondary Data ◽  
Short Term ◽  
Causality Test ◽  
Bounds Test ◽  
Growth Hypothesis

This study was an inquiry into the nexus of the foreign-direct investment (FDI) led growth hypothesis, and how it translates into the development of the Nigerian economy as of 1970 – 2018. The study utilized secondary data from the ‘World Development Indicators’ which were analysed using the Bounds test for cointegration and the ‘autoregressive distributed lag (ARDL) approach to divulge both the short-term cum the long-term influence of foreign direct investment net inflow on ‘economic development’ of Nigeria. The Bounds test was conducted after the unit root test revealed that the variables were stationary at mixed order of level and first difference. The outcome of the ARDL Bounds test supported confirmation of long-term association among the variables. The ARDL short-run error correction showed that 14.62% of the instability in the model was corrected yearly. In the short-term, it was discovered that FDI wielded a deleterious and substantial weight on ‘economic development of Nigeria. Meanwhile, the long-term estimates indicated that FDI influenced economic development positively, though not in a significant manner. The Granger causality test supported the fact that FDI causes ‘economic development’ in Nigeria. Given this potential of FDI exerting a positive effect on ‘economic development’, the paper recommended that bottlenecks inherent in FDI influxes in the country should be removed so as to reap the fullest benefits of such inflows in Nigeria.

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

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.

scholarly journals Market Integration and Price Transmission in the Vertical Supply Chain of Rice: An Evidence from Bangladesh

Agriculture ◽  
2020 ◽  
Vol 10 (7) ◽  
pp. 271
Author(s):  
Limon Deb ◽  
Yoonsuk Lee ◽  
Sang Hyeon Lee
Keyword(s):  
Supply Chain ◽  
Market Integration ◽  
Threshold Effect ◽  
Price Transmission ◽  
Causality Test ◽  
Threshold Autoregressive ◽  
Market Participants ◽  
Long Run ◽  
Short Run ◽  
Retail Prices

As a staple food, rice has an enormous market in Bangladesh in terms of market participants and the volume of the product. As the price of rice is always a sensitive factor for producers, poor consumers and policy makers, this paper investigates market integration and price transmission along the vertical supply chain of rice. Johansen’s test of co-integration confirmed that farm, wholesale and retail prices are co-integrated in the long-run. A causality test revealed that prices were found to be at wholesale levels for both the upstream and downstream markets. The asymmetry error correction model (ECM) has discovered short-run and long-run asymmetry in price transmission in the vertical supply chain where both producers and consumers were being affected due to positive and negative asymmetry. Threshold autoregressive (TAR) and momentum threshold autoregressive (M-TAR) models have confirmed threshold co-integration as well as threshold effect on asymmetry in price transmission. The results highlight the inevitability of policy implementations and increased public interventions to reduce asymmetry for engendering greater pricing efficiency in Bangladesh rice markets.

scholarly journals Co-integration of Groundnut Markets in India with Special Reference to Karnataka State

2020 ◽  
pp. 14-22
Author(s):  
Akshata Nayak ◽  
H. Lokesha ◽  
C. P. Gracy
Keyword(s):  
Market Integration ◽  
Unit Root Test ◽  
Groundnut Oil ◽  
Step Method ◽  
Causality Test ◽  
Price Series ◽  
Long Run ◽  
Oil Markets ◽  
Integration Test ◽  
The Government

Aims: Market integration is an indicator that explains how different markets are related to each other. The main aim of the paper is to examine the market integration of groundnut seed and oil markets in India.  Study Design: This paper examines the market integration in six major groundnut oil markets and four groundnut pod markets using monthly wholesale prices of groundnut. Methodology: Test for stationarity was done using Dickey Fuller Test. The Engle-Granger two-step method is used to test for co-integration between the variables. Johansen co-integration test was applied to analyse the long run equilibrium among the groundnut markets. Results: Unit root test indicated that the price series in each location are non-stationary at their levels and stationary at their first differences. The Granger causality test indicated that all the market pairs are well co-integrated, some of the markets have bidirectional relationship and some have unidirectional relationship at five per cent level of significance, which implies that the groundnut prices have an equally long run association. Conclusion: In overall, the study suggests that regional markets for groundnut in India are strongly co-integrated. Therefore, the Government can stabilize the price in one key market and rely on commercialization to produce a similar outcome in other markets. This reduces the cost of stabilization considerably.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PENYALURAN PENGARUH TINGKAT SUKU BUNGA, NISBAH BAGI HASIL DEPOSITOMUDHARABAH, DAN PERTUMBUHAN EKONOMI TERHADAPPERTUMBUHAN DEPOSITO MUDHARABAH DI BANK SYARIAH MANDIRI PERIODE 2006:01-2011:12

Media Ekonomi ◽  
2017 ◽  
Vol 20 (3) ◽  
pp. 73
Author(s):  
Iqra Aulia
Keyword(s):  
Interest Rate ◽  
Unit Root Test ◽  
Secondary Data ◽  
Dynamic Impact ◽  
Causality Test ◽  
Var Analysis ◽  
Disturbance Factor ◽  
Vector Auto Regression ◽  
The Interest Rate ◽  
Auto Regression

<p>Vector Auto Regression (VAR) is an analysis or statistic method which can be used to predict time series variable and to analyst dynamic impact of disturbance factor in the variable system. In addition, VAR analysis is very usefull to assess the interrelationship between economics variable. This research through the following test phases: unit root test, optimal lag test, granger causality test, and form a vector auto regression model (VAR). The data used in this research is interest rate (i), profit low sharing of mudharabah deposits (nBH), economic growth (gGDP, growth of mudharabah deposits volume (gVM) in the period 2006:01-2011:12. The effectiveness was measured by two indicators. This study used secondary data issued by Syariah Mandiri Bank &amp; Bank Indonesia. The result of the study shows that response velocity of variable in growth of mudharabah deposits volume (gVM) towards shock instrument of interest rate(i) until reach the final target about 4 months. Thus we can conclude that growth of mudharabah deosits volume through Interest Rate is not effective in Indonesia period of 2006:01-2011:12. Keyword: Vector Auto Regression (VAR), growth of mudharabah deposits volume (gVM), The Interest Rate.</p>

scholarly journals PERILAKU HARGA DAN INTEGRASI PASAR HORIZONTAL BERAS DI PROPINSI BENGKULU

2014 ◽  
Vol 13 (2) ◽  
pp. 131-146
Author(s):  
Cahya Suryana ◽  
Putri Suci Asriani ◽  
Redy Badrudin
Keyword(s):  
Market Integration ◽  
Unit Root Test ◽  
Price Policy ◽  
Price Formation ◽  
Price Behavior ◽  
Causality Test ◽  
Rice Farmers ◽  
Integration Test ◽  
Rice Consumption ◽  
Market Leader

Rice is one of the strategic foods in Indonesia. According to Alimoeso (2011), approximately 95% of the Indonesian people depend on rice, poor families allocate  nearly 21.8% of its expenditure on rice. In addition,  of rice consumption estimates is  the highest Indonesian in Southeast Asia, namely, 139 kg / capita / year, of which about 120 kg consumed directly. That is why price policy is important instrument for improving the wealth of rice farmers as well as rice traders. The purpose of the study was to analyze the price behavior, (2) analyze market integration (3) to analyze market causality, and (4) determine the rice leader market in Bengkulu Province. This study used a method of analysis of price behavior, market integration, unit root test, co-integration test and analysis methods of Engle and Granger causality. The results rice price behavior in Bengkulu do not fluctuate indicating by lower value of show that coefficient variable. There is strong integration market in price formation between Bengkulu, Rejang Lebong, North Bengkulu and South Bengkulu markets. The causality test proved that the prices of the price of North Bengkulu affect the price rice Bengkulu City, Rejang Lebong and South Bengkulu, and none of the three areas that affect the price of rice in North Bengkulu, and the leader market is North Bengkulu.Keywords: price behaviour, horizontal market integration, rice, market leader

scholarly journals Financial Deepening and Domestic Investment in Nigeria

2016 ◽  
Vol 8 (3) ◽  
pp. 40 ◽  
Author(s):  
Frances N. Obafemi ◽  
Chukwuedo S. Oburota ◽  
Chukwunonso V. Amoke
Keyword(s):  
Structural Break ◽  
Unit Root Test ◽  
Secondary Data ◽  
Financial Deepening ◽  
Domestic Investment ◽  
Causality Test ◽  
Interest Rate Spread ◽  
Integration Test ◽  
The Relationship ◽  
The Empirical Analysis

The study examined the relationship between financial deepening and investment in Nigeria. Secondary data spanning from 1970 to 2013 was used for the empirical analysis. It adopted the Gregor-Hansen Endogenous structural break methodology and the supply-leading hypothesis in building the model. The study also employed the Unit Root Test, Co Integration Test and Granger Causality Test. It discovered a unidirectional causality, running from financial deepening to investment. It also found that the financial deepening has a statistically significant impact on domestic investment. Based on these empirical findings, the study recommended increased integration of the credit and thrift societies, cooperatives, rural saving organization etc into the mainstream formal financial sector in order to shore up the mobilization of savings for investment. It also recommended subsidizing the operational cost of financial intermediation so as to narrow the gap in interest rate spread. These steps when judiciously executed will ultimately promote financial deepening by easing the rigidities involved in mobilizing and accessing of credit for investment purpose.

scholarly journals ANALISIS KAUSALITAS ANTARA KETIMPANGAN PENDIDIKAN, KETIMPANGAN PENDAPATAN, DAN KEMISKINAN DI INDONESIA

2020 ◽  
Vol 2 (1) ◽  
pp. 65
Author(s):  
Nur Azmi Randa ◽  
Sri Ulfa Sentosa
Keyword(s):  
Income Inequality ◽  
Causal Relationship ◽  
Educational Inequality ◽  
Descriptive Analysis ◽  
Unit Root Test ◽  
Secondary Data ◽  
Stability Test ◽  
Variable Response ◽  
Causality Test ◽  
Inductive Analysis

This study aims to find out the causal relationship between educational inequality, income inequality, and poverty in Indonesia. The data used are secondary data in the form of panel data from 2011 to 2018. Data analysis used is descriptive analysis and inductive analysis. In inductive analysis there are several tests, namely (1) Root Root Test (Unit Root Test), (2) Cointegration Test, (3) Optimum Lag Test, (4) Granger Causality Test, (5) Stability Test (Stability Test), (6) Variable Response Test (Impulse Response Finction), (7) Variance Decomposition Test. The results of this study indicate that: (1) There is a causal relationship between educational inequality and income inequality. (2) There is no causal relationship between inequality in education and poverty. (3) there is no causal relationship between income inequality and poverty. But there is a one-way relationship between income inequality and poverty.

scholarly journals ANALISIS INTEGRASI PASAR HARGA AYAM BROILER DI PROVINSI JAWA TIMUR

2012 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Hariadi Subagja ◽  
Slamet Hartono ◽  
Krisnha Agung Santosa ◽  
Jamhari Jamhari
Keyword(s):  
Granger Causality ◽  
Market Integration ◽  
Secondary Data ◽  
Animal Husbandry ◽  
Granger Causality Test ◽  
Causality Test ◽  
The One ◽  
Survey Approach ◽  
Integration Analysis

This research is aimed to measure integration rate of broiler price and the relation of broiler price among the regions in East Java Province. This research was conducted from 2000 up to 2009 by survey approach.  The secondary data of monthly broiler price at consumer level in Jombang, Malang, Jember and Surabaya regencies published by agriculture and animal husbandry departments as well as East Java statistical bureau were used. The descriptive and market integration analysis of co-integration Johansen and Granger causality test were used.  The research showed that broiler markets in East Java were integrated and efficient. The analysis of Granger causality in the four regencies in East Java showed that the two-way causality of broiler price was pointed in Jombang-Malang, Jombang-Surabaya, Surabaya-Jember regencies respectively. Meanwhile the one-way causality was pointed in Jombang-Jember, Malang-Jember, Surabaya-Jember, and Surabaya-Malang.Key words: Broiler Price, Market integration, Causality 

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