Estimating Vertical Price Transmission in Pulse Markets of India
Price: ₹ 500
Author: Asha Bisht and Anil Kumar
Author Address: Assistant Professor, Department of Agricultural Economics, CSSS PG College, Machhra, Meerut-250106 (Uttar Pradesh), and Professor, Department of Agricultural Economics, GBPUA&T, Pantnagar-263145 (Uttrakhand)
Keywords: Asymmetric, Johansen co-integration, price transmission, vertical integration.
JEL Codes: Q02, Q11, Q13.
Abstract
This study was conducted to analyze the vertical integration in selected chickpea and pigeon pea markets. The Johansen cointegration method was used to observe the relationship between wholesale prices and retail prices of pulses. Further, the Vector Error Correction Model (VECM) was used to show short-run dynamics. Wald test statistic was used to examine the influence of all the lagged variables on retail prices. It was observed from the results of vertical integration that wholesale and retail prices were cointegrated only for markets like Delhi, Mumbai and Bangalore, which were either central or terminal. No co-integration was found for producing markets like Indore and Jaipur. The wholesale and retail prices behaved independently in the short run. Lack of integration implied an imperfect market situation for pulses hindering the perfect flow of price transmission. So, government policies should be formulated in such a way that ensures greater market efficiency. Physical and institutional market infrastructure needs to improve price transmission, specifically in the producer market.
Description
Indian Journal of Economics and Development
Volume 19 No. 1, 2023, 195-201
DOI: https://doi.org/10.35716/IJED/22135
NAAS Score: 5.15 (2023)
Indexed in SCOPUS and ESCI (Clarivate Analytics)
Journal Citation Indicator: 0.04 (WoS)
UGC Approved