Spatial market integration of coconut markets in Karnataka

The paper makes an attempt to examine the spatial integration of coconut markets in the state of Karnataka using Johansen cointegration method. It examines the direction of price transmission through Granger causality test. The short run behavior and the speed of adjustment to disequilibrium are studied through error correction model. The results show that the coconut markets in Karnataka are spatially integrated. There is no exogenous market but Arsikere and C R Patna are dominant markets and influence others. Short run adjustments indicated by error correction model reveal a slow response by these markets. The paper recommends to improve the short run integration of these markets through proper utilization of Information and Communication Technology (ICT).