An Econometric Investigation on Groundnut Market Integration in India Sangeetha R.1,,*, Raman M.S.2, Rohini A.1 1Domestic and Export Market Intelligence Cell, Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu, India-641 003 2Ph. D., Scholar, Centre for Agricultural and Rural Development Studies Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu, India-641 003 *Corresponding author's email: sangeethaeco2016@gmail.com
Online published on 13 December, 2017. Abstract This paper analyzes groundnut market integration in four regional markets located in Tamil Nadu, Karnataka, Andhra Pradesh and Gujarat of India using monthly wholesale prices of Groundnut. Unit root test indicated that the price series in each location are non-stationary at their levels, and stationary at their first differences. Co-integration results showed that the regional markets have price linkages, and thus are spatially integrated. Price transmission analysis revealed that bidirectional relationships exist within domestic markets which indicated the price transmission happening in short run adjustments and the presence of long run equilibrium existed among the groundnut markets in Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. In the case of Tamil Nadu Groundnut market, the speed of adjustment towards equilibrium was almost 0.34 per cent and Karnataka market was the key determinant of shocks in the groundnut market of Tamil Nadu. Top Keywords Groundnut, price transmission, spatial market integration, time series. Top |