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Market integration and the law of one price: An exploration of the major onion markets of India Mondal Bitan, Arti*, Roy Bidhan Chandra Palli Siksha Bhavana, Visva-Bharati, Sriniketan, Birbhum-731 236 *Corresponding author: arti.thakur@visva-bharati.ac.in
Online Published on 16 March, 2022. Abstract Twisting prices of onion haunt not only the stakeholders but also the politicians since the 1990s. Being the most sensitive horticultural commodity, onion warrants special attention of the policymakers to take necessary remedial measures to curb the prices congenial for both producers as well as consumers. The present study silhouette extent of market integration and determine the presence of the law of one price across selected major onion markets of India. Weekly prices of onion from July 2019 to June 2021 has been considered for the analysis. Augmented Dickey-Fuller Statistics has been used to check for stationarity and order of integration followed by Johansen Co-integration test and granger causality. The findings revealed the presence of unit root and strong spatial integration across the selected markets. Top | |
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