Hussain, Babar (2011): Testing the law of one price in gram markets of Pakistan.
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Regional market integration in many agricultural commodities has been extensively studied for the insight, it provides in to the functioning of such markets; such studies provide valuable information about the dynamics of market adjustment, and whether there exist market imperfection, which may justify government intervention. This study used the monthly wholesale price (Rs. /40 kg) data from January 1991 to December 2006 of gram, in Logarithmic form and empirically estimated the degree of integration in gram markets of Pakistan using co integration analysis. Co-integration results show that all gram markets are highly Co-integrated in the Long run. The high degree of market integration observed in this case is consistent with the view that Pakistan’s gram markets are quite competitive and provide little justification for extensive and costly government intervention designed to improve competitiveness to enhance market efficiency.
|Item Type:||MPRA Paper|
|Original Title:||Testing the law of one price in gram markets of Pakistan|
|English Title:||Testing the law of one price in gram markets of Pakistan|
|Keywords:||Market Integration; Co-Integration; Gram Markets; Pakistan|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness
|Depositing User:||Muhammad Amir Fahim|
|Date Deposited:||04. May 2011 01:24|
|Last Modified:||28. Feb 2013 18:41|
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