Network Project on Market Intelligence, Department of Agricultural Economics, College of Agriculture, Professor Jayashankar Telangana State Agricultural University, Hyderabad
Online published on 23 October, 2017.
The present study was conducted to assess the performance of the selected agricultural markets in the Telangana state. Correlation analysis and co-integration analysis was carried out to determine the spatial market integration among the various agricultural markets. For co-integration analysis the time series data were tested using the Dickey-Fuller unit root test followed by Engle-Granger test to determine the market integration. Market integration analysis revealed that a moderate correlation ranging from 0.666 among Warangal-Nagarkurnool to 0.868 between Nizamabad-Siddipet for maize, and all of them were significant at 1% level of significance. Dickey-Fuller unit root test revealed that the market prices for all the crops were stationary in nature for a period of time. Engle-Granger (EG) test revealed that all the markets were perfectly co-integrated among each other in terms of market prices. We tried to detect short-term lead-lag relations among the five markets by using the Granger causality test.
