ePrints

Testing for the law of one price: Rice market integration in Bangladesh

Lookup NU author(s): Dr Philip Dawson

Downloads

Full text for this publication is not currently held within this repository. Alternative links are provided below where available.

Abstract

Recent studies of spatial market integration have adopted error correction models to test for its existence and for market dominance. An integrated empirical framework is proposed here which tests for long-run spatial market integration between price pairs using a dynamic vector autoregressive model and cointegration. Hypotheses tests of market integration, perfect market integration, and causality are conducted sequentially. The approach is illustrated using monthly prices from rice markets in Bangladesh since trade liberalisation in 1992. Results show that rice markets are perfectly integrated and that Dhaka dominates near markets but is dominated by more distant markets. Copyright © 2002 John Wiley and Sons, Ltd.

Publication metadata

Author(s): Dawson PJ; Dey PK

Publication type: Article

Publication status: Published

Journal: Journal of International Development

Year: 2002

Volume: 14

Issue: 4

Pages: 473-484

ISSN (print): 0954-1748

ISSN (electronic): 1099-1328

Publisher: John Wiley & Sons Ltd.

URL: http://dx.doi.org/10.1002/jid.888

DOI: 10.1002/jid.888

Altmetrics

Share