Market Integration in Wholesale Rice Markets in India
Australian National University (ANU) - Australia South Asia Research Centre (ASARC); Crawford School of Public Policy
K. V. Bhanu Murthy
University of Delhi - School of Economics - Commerce Department
Monash University - Centre for Health Economics
Australia South Asia Research Centre Working Paper No. 2005/03
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, Q18working papers series
Date posted: June 15, 2005
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