Market Integration in Wholesale Rice Markets in India

Australia South Asia Research Centre Working Paper No. 2005/03

36 Pages Posted: 15 Jun 2005

See all articles by Raghbendra Jha

Raghbendra Jha

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

Anurag Sharma

Monash University - Centre for Health Economics

Date Written: June 2005

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.

Keywords: Market integration, wholesale recie markets, India

JEL Classification: C22, D40, N55, Q18

Suggested Citation

Jha, Raghbendra and Murthy, K. V. Bhanu and Sharma, Anurag, Market Integration in Wholesale Rice Markets in India (June 2005). Australia South Asia Research Centre Working Paper No. 2005/03. Available at SSRN: https://ssrn.com/abstract=742806 or http://dx.doi.org/10.2139/ssrn.742806

Raghbendra Jha (Contact Author)

Australian National University (ANU) - Australia South Asia Research Centre (ASARC) ( email )

Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 2683 (Phone)
+61 2 6125 0443 (Fax)

HOME PAGE: http://crawford.anu.edu.au/crawford_people/content/staff/acde/rjha.php

Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

K. V. Bhanu Murthy

University of Delhi - School of Economics - Commerce Department ( email )

59 Vaishali Enclave
Pitampura
Delhi, 110034
India
+91 11 27667891 (Phone)

Anurag Sharma

Monash University - Centre for Health Economics ( email )

Building 75
Clayton
Melbourne, VIC 3800
Australia
61 3 99050519 (Phone)

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