Work

Testing for the law of one price: rice market integration in Bangladesh

Year: 2002

Type: article

Abstract: Recent studies of spatial market integration have adopted error correction models to test for its existence and for market dominance. An integrated empirical framework is proposed here which tests for long‐run spatial market integration between price pairs using a dynamic vector autoregressive model and cointegration. Hypotheses tests of market integration, perfect market integration, and causality are conducted sequentially. The approach is illustrated using monthly prices from rice markets in Bangladesh since trade liberalisation in 1992. Results show that rice markets are perfectly integrated and that Dhaka dominates near markets but is dominated by more distant markets. Copyright © 2002 John Wiley & Sons, Ltd.

Source: Journal of International Development

DOI: 10.1002/jid.888

Authors: P. J. Dawson, P. K. Dey

Institutions: Newcastle University, Bangladesh Rice Research Institute

Language: English

Topic: Economics of Agriculture and Food Markets

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Zero hunger

Open Access status: green

OpenAlex ID: W2144228068

FWCI: 4.04

Cites: 29

Cited by: 65

Related to: 10