Spatial Market Integration and Price Transmission: An Empirical Analysis of Major Potato Markets of Punjab: 24156
Price: ₹ 1000
https://doi.org/10.35716/IJED-24156
Author: Ravneet Kaur and Namami Gohain
Author Address: Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (Punjab)
Abstract
This
study investigated the integration of potato markets in Punjab (Amritsar,
Jalandhar, Khanna, Ludhiana) and New Delhi (Azadpur) using monthly price data
from 2009 to 2021. The coefficients for potato arrivals were negative except in
the Jalandhar market. In contrast, potato prices were highly correlated, except
for the Ludhiana-Amritsar market. All Punjab markets were effectively
integrated with the Jalandhar market. However, the Azadpur market showed
effective integration with all the potato markets of Punjab. The long-run
co-integrating equations showed a statistically significant relationship
between potato prices in different markets over the long run. The proposed
policy intervention advocates strengthening market intelligence across all
markets and establishing an online marketing system through networking and
computerisation.
Keywords
Granger causality, market arrivals,
market integration, price transmission.
JEL Codes
C22, C53, Q12, Q13.