Spatial Market Integration and Price Transmission: An Empirical Analysis of Major Potato Markets of Punjab
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Author: Ravneet Kaur and Namami Gohain
Author Address: Research Scholar and Economist (Agricultural Marketing), Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (Punjab), India
Keywords: Granger causality, market arrivals, market integration, price transmission.
JEL Codes: C22, C53, Q12, Q13.
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.
Description
Indian J Econ Dev, 2026, 22(3), 471-478
https://doi.org/10.35716/IJED-24156