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Market Integration in Wholesale Rice Markets in IndiaRaghbendra JhaAustralian National University (ANU) - Australia South Asia Research Centre (ASARC); Crawford School of Public Policy K. V. Bhanu MurthyUniversity of Delhi - School of Economics - Commerce Department Anurag SharmaMonash University - Centre for Health Economics June 2005 Australia South Asia Research Centre Working Paper No. 2005/03 Abstract: This paper tests for market integration in 55 wholesale rice markets in India using monthly data over the period January 1970 - December 1999. The technique of Gonzalez-Rivera and Helfand (2001) is used to identify common factors across various markets. It is discovered that market integration is far from complete in India and a major reason for this is the excessive interference in rice markets by government agencies. As a result it is hard for scarcity conditions in isolated markets to be picked up by markets with abundance in supply. A number of policy implications are also considered.
Number of Pages in PDF File: 36 Keywords: Market integration, wholesale recie markets, India JEL Classification: C22, D40, N55, Q18 working papers seriesDate posted: June 15, 2005Suggested CitationContact Information
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