scholarly journals Market integration of grain legumes in India: the case of the chickpea market

2014 ◽  
Vol 10 (2) ◽  
pp. 11-29 ◽  
Author(s):  
Amarender Reddy
Keyword(s):  
Market Integration ◽  
Price Discovery ◽  
Grain Legumes ◽  
North India ◽  
Adjustment Process ◽  
Local Market ◽  
Market Prices ◽  
Domestic Markets ◽  
Long Run ◽  
Correction Terms

The present study assesses the market integration of chickpea in India from 2003 to 2010. The month end prices of chickpea for twelve markets in north India were used for the study. Out of twelve markets, only three markets are cointegrated, indicating weak integration of chickpea markets in India. However, the terminal markets located in major consuming (Delhi) and export/import locations (Dohad/Gujarat) clearly play an important role in price discovery and influences other domestic markets indicating the relevance of the import prices and large consuming centres on local market prices. Error correction terms indicate that the adjustment process from short-term disequilibrium in prices to long run price equilibrium is very slow. Overall, there is evidence of weak cointegration in the chickpea markets in North India and imports and major consuming centres are playing an important role in price discovery in domestic chickpea markets.DOI: http://dx.doi.org/10.3329/sja.v10i2.18320 SAARC J. Agri., 10(2): 11-29 (2012)

scholarly journals Price Causality and Bivariate Autoregressive Analysis of Dry Season Okra Marketing in Southeastern Nigeria

2013 ◽  
Vol 1 (2) ◽  
pp. 99-107
Author(s):  
Ikechi Agbugba
Keyword(s):  
Market Integration ◽  
Wholesale Price ◽  
Dry Season ◽  
Local Market ◽  
Causality Test ◽  
Southeastern Nigeria ◽  
Market Prices ◽  
Multi Stage ◽  
Causality Tests ◽  
Causality Relationship

The study examined the price causality tests and Bivariate auto-regressive analysis of dry season Okra in south eastern Nigeria. The study specifically described the socio-economic features of dry season Okra marketers in the study area, determine the price causality in the marketers’ prices of dry season vegetable in the study area and measure the extent of market integration amongst dry season vegetable markets in the study area. Multi-stage technique of sampling was used to select 111 Okra marketers in the study area, and structured questionnaires administered to them. Descriptive statistics such as percentages and frequencies were used to analyze the socio-economic features, as well as determine the price causality in the marketers’ prices of the respondents. Granger causality test conducted showed that there was no causality relationship existing between the farmgate and wholesale prices for Okra wholesalers; and a unidirectional price causality relationship existing from the wholesale price of Okra and retail price, and not the other way. Bivariate autoregressive model was used to measure integration between central and local markets. From the study, there was a significant relationship between the central and local market prices for Okra wholesalers and retailers. The result also showed that there was an instantaneous adjustment to price changes in the market pairs of the marketers, an indication of perfect competitiveness amongst them suggesting the existence of non-collusive pricing behaviour.

scholarly journals Market integration and price transmission in Ethiopian banana supply chain

2020 ◽  
Author(s):  
Zewdie Habte Shikur
Keyword(s):  
Supply Chain ◽  
Granger Causality ◽  
Market Integration ◽  
Geographic Distance ◽  
Price Transmission ◽  
Transport Costs ◽  
Wholesale Market ◽  
Market Prices ◽  
Long Run ◽  
Banana Market

Abstract Local banana market prices in surplus areas are asymmetrically integrated and transmitted with that in central banana market prices or deficit areas due to geographic distance between markets, market power, and high transportation costs. As the result, the banana marketing margin is high due to high transport costs and transaction costs. Although the policy relevance of degree of vertical and spatial price transmission in banana supply chain, in Ethiopia is largely unknown, and this study assists to bridge the existing gap. The study investigates degree of spatial and vertical market integration and price transmission of banana supply chain in Ethiopia. ARDL co-integration bound tests and Granger causality tests are employed to examine vertical and horizontal price transmissions in banana supply chain using 10 years average monthly banana prices. The study finds relatively a higher degree of price transmission from central wholesale banana market to surplus banana market. Central wholesaler price has a significant effect on both banana producer and retailer prices in both long-run and short‐run. The result indicates that Granger causality is running from central wholesale market to local markets. There may be high transaction cost may reflect the vertical and spatial asymmetric price transmissions in banana supply chain. Policy interventions in banana supply chains could facilitate a faster and substantial degree of price transmission between actors in banana supply chain.

scholarly journals Is a World Price Influencing Indian Vegetable Oil Market? Evidence from Historical Prices

2021 ◽  
Vol 66 (2) ◽  
Author(s):  
Akshata , Nayak
Keyword(s):  
Edible Oils ◽  
International Market ◽  
Groundnut Oil ◽  
Market Prices ◽  
Domestic Markets ◽  
Market Intelligence ◽  
Long Run ◽  
Oil Markets ◽  
Bidirectional Relationship ◽  
Storage Networks

India is one of the leading producers and consumers of vegetable oils in the world. The integration of ’India’s edible oils markets with international oil markets (Rotterdam market) is studied with the overall objective of establishing long-run relationship and direction of causality. Keeping in view of the quantum of arrivals, five major domestic wholesale markets and one international market each for groundnut, soybean, and sunflower were selected. Johansen’s cointegration test revealed the prevalence of long-run relationships across the markets. In the case of groundnut oil, Rotterdam market prices are influenced by only Delhi market, whereas all selected domestic markets influence the latter. The results of causality in soybean markets confirmed a unidirectional relationship between all the domestic markets with the international market except Jaipur market, which has a bidirectional relationship with the international market. Hyderabad and Vijayawada sunflower market prices influenced the international market. The suggested policy intervention is to strengthen market intelligence for farmers by establishing online market analysis and dissemination system. The development/strengthening of market infrastructure, including communication, transportation, and storage networks, is mandatory to fully integrate the markets.

scholarly journals Asymmetric Effects Of Inflation On Stock Market Prices: New Empirical Evidence Using Greek Data

2012 ◽  
Vol 28 (3) ◽  
pp. 325 ◽  
Author(s):  
Katrakilidis Constantinos ◽  
Lake Andreas Ektor ◽  
Trachanas Emmanouil
Keyword(s):  
Stock Market ◽  
Inflation Rate ◽  
Classical Case ◽  
Adjustment Process ◽  
Dynamic Adjustment ◽  
Asymmetric Adjustment ◽  
Market Returns ◽  
Market Prices ◽  
Stock Market Returns ◽  
Long Run

Since economic theory establishes a relationship between stock market returns and inflation rate, we attempt to re-evaluate the above relationship for Greece considering the possibility of nonlinearities. In particular, empirical analysis is based upon the nonlinear cointegration framework and applies the asymmetric ARDL cointegration methodology, following previous work by Shin, Yu and Greenwood-Nimmo (2011). In doing so, we permit a much richer degree of flexibility in the dynamic adjustment process toward equilibrium, than in the classical case of a linear model. Our findings present evidence of asymmetric adjustment around a unique long-run equilibrium.

scholarly journals Market integration of selected cotton markets in Haryana

2019 ◽  
Vol 38 (4) ◽  
Author(s):  
V. Mahesh ◽  
R.K. Grover ◽  
R.S. Geetha
Keyword(s):  
Granger Causality ◽  
Market Integration ◽  
Granger Causality Test ◽  
Causality Test ◽  
Domestic Markets ◽  
Price Series ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Integration Test ◽  
Adf Test

The present study aimed to paper the co-integration among the selected cotton markets in Haryana. The monthly data on prices of cotton were collected for the period from 2005-06 to 2016-17. The advanced econometric tools like ADF test, Johansen co-integration test and Granger Causality test were used to study market integration. The price series of commodity namely cotton in selected markets showed the consequences of unit root and were stationary at first difference. The long run equilibrium relationship among the selected markets indicated that these were integrated with each other. This implies that prices in domestic markets of Haryana move together in response to changes in the demand and supply and cost of a product. Granger Causality test resulted Dabwali market as lead cotton market because it influenced the prices of most of selected cotton markets.

Macroeconomic Determinants of Stock Market Prices in Nepal

2020 ◽  
Vol 2 (1) ◽  
pp. 56-65
Author(s):  
Bhim Prasad Panta
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Money Supply ◽  
Developing Economies ◽  
Annual Data ◽  
Economic Variables ◽  
Market Prices ◽  
Ardl Model ◽  
Long Run

Background: Stock market plays a crucial role in the financial system of a country. It can be viewed as a channel through which resources are properly channelized. It enables the governments and industry to raise long-term capital for financing new projects. The stock markets of developing economies are likely to be sensitive to various macro-economic factors such as GDP, imports, exports, exchange rates etc., when there is high demand on financial products, as a constituent of financial market, ultimately stock market needs to develop. Many factors can be a signal to stock market participants to expect a higher or lower return when investing in stock and one of these factors are macroeconomic variables and thus, macro-economic variables tend to effect on stock market development. Objective: This study examines the linkage between stock market prices (NEPSE index) and five macro-economic variables, namely; real GDP, broad money supply, interest rate, inflation, and exchange rate using ARDL model and to explain the behavior of the Nepal Stock Exchange Index. Methods: The ECM which is delivered from ARDL model through simple linear transformation to integrate short run adjustments with long run equilibrium without losing long run information. The analysis has been done by using 25 years' annual data from 1994 to 2019. Findings: The result suggests that the fluctuation of Nepse Index in long run is strongly associated with broad money supply, interest rate, inflation, and exchange rate. Conclusion: Though Nepalese stock market is in primitive stage, broad money supply, interest rate, inflation and exchange rate are major factors affecting stock market price of Nepal. So, policies and strategies should be made and directed taking these in to consideration. Implication: The findings of research can be helpful to understand the behavior of Nepalese stock market and develop policies for market stabilization.

scholarly journals Location-Specific Adjustments in Population and Employment across Metropolitan America

Urban Science ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 24
Author(s):  
Gordon F. Mulligan ◽  
John I. Carruthers
Keyword(s):  
Labor Markets ◽  
Metropolitan Areas ◽  
Adjustment Process ◽  
Equilibrium Solutions ◽  
Natural Amenities ◽  
Long Run ◽  
Local Sustainability ◽  
Universal Solution ◽  
Standard Linear ◽  
Local Solutions

This paper examines the joint adjustment of population and employment numbers across America’s metropolitan areas during the period 1990–2015. Current levels of both are estimated, for 10 year periods, using their lagged (own and cross) levels and eight other lagged variables. Population is affected by both human and natural amenities and employment by wages, patents, and other attributes of the workforce. This paper questions the conventional interpretation of the adjustment process by using geographically weighted regression (GWR) instead of standard linear (OLS, 2GLS) regression. Here the various estimates are all local, so the long-run equilibrium solutions for the adjustment process vary over space. Convergence no longer indicates a stable universal solution but instead involves a mix of stable and unstable local solutions. Local sustainability becomes an issue when making projections because employment can quickly lead or lag population in some metropolitan labor markets.

scholarly journals Currency Depreciation, Trade Balance and Intra-Industry Trade Interactions in Turkey’s OECD Trade

2016 ◽  
Vol 8 (4) ◽  
pp. 8 ◽  
Author(s):  
Mehmet Demiral
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Adjustment Process ◽  
Industry Trade ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

<p>This study re-examines the determinants of Turkey’s trade balance in its manufactures trade with 33 OECD-member countries for the short-run and the long-run. Unlike other studies, in the relationships we also control the moderating effects of the availability of import substitutes proxied by intra-industry trade. We analyze quarterly aggregated time-series data of the period spanning from 1998.QI to 2015.QIII, following the autoregressive distributed lag (ARDL) bounds testing approach to the cointegration and the error correction modeling. Estimation results reveal that real effective exchange rate, together with domestic and foreign incomes are still among the core determinants of Turkey’s trade balance in the manufacturing sectors. There is no significant impact of domestic final oil prices that also include all the taxes on gasoline. The trade balance depends on domestic income negatively and the aggregated income of the OECD countries positively. The finding that real depreciation of Turkish lira against to those of Turkey’s OECD trade partners improves trade balance in both the short-run and the long-run, indicates no evidence of J-curve adjustment process. Unsurprisingly, the intra-industry trade seems to be an important factor that moderates the elasticities of trade balance to its determinants, especially to real effective exchange rate and domestic income. Overall results underline the importance of import-substitution capability besides the export-oriented production to ease the longstanding large trade deficits for Turkey.</p><strong></strong>

The Olympic Games as a News Shock

2017 ◽  
Vol 19 (6) ◽  
pp. 884-906 ◽  
Author(s):  
Viktoria C. E. Langer ◽  
Wolfgang Maennig ◽  
Felix Richter
Keyword(s):  
Steady State ◽  
Olympic Games ◽  
Structural Models ◽  
Adjustment Process ◽  
Dynamic Adjustment ◽  
Economic Variables ◽  
Long Run ◽  
News Shock ◽  
Steady State Levels ◽  
The Olympic Games

The awarding of the Olympic Games to a certain city or the announcement of a city’s Olympic bid may be considered as a news shock that affects agents’ market expectations. A news shock implies potential impacts on the dynamic adjustment process that change not only the volatility but also the long-run steady-state levels of endogenous economic variables. In this study, we contribute to and extend previous researchers’ attempts to empirically test for the Olympic Games as a news shock by implementing full structural models and by matching Olympic hosts and bidders to structurally similar countries.

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