Center for Agricultural and Rural Development Studies, Tamil Nadu Agricultural University, Coimbatore – 641 003, Tamil Nadu
Online published on 24 February, 2018.
This paper has analyzed market integration in three regional markets located in Tamil Nadu, Karnataka and Kerala of India and Indonesia/Philippines international market using monthly wholesale prices of copra. The unit root test has indicated that the price series in each location are non-stationary at their levels, and the series became stationary at their first differences. The co- integration results have shown that the regional markets have price linkages, and thus are spatially integrated. The price transmission analysis has revealed that bidirectional relationships exist within the domestic markets has which indicated the happening of price transmission in shortrun adjustments and the presence of long-run equilibrium relationship between the selected markets.
Copra, spatial market integration, price transmission, co-integration, price linkages
