Cointegration and market integration: An application to the Indonesian rice market

Carol Alexander · John Wyeth

197 citations0/0 files storedThe Journal of Development Studies

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Economics of Agriculture and Food Markets Agricultural economics and policies Spatial and Panel Data Analysis

Abstract

This article suggests improvements in the use of regression analysis to measure spatial market integration. The procedure pioneered by Ravallion is still widespread but is valid only under certain conditions of exogeneity. The alternative offered here is an error‐correction mechanism which makes it possible to test for exogeneity as well as indicating the direction and strength of causality in price formation between markets. The method is illustrated with data on rice prices in different parts of the Indonesian market. The results confirm, among other things, that supply sources are more important than demand sources in driving prices.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 197 citations exist upstream.

References

1987Co-Integration and Error Correction: Representation, Estimation, and Testing 1979Distribution of the Estimators for Autoregressive Time Series with a Unit Root 1969Investigating Causal Relations by Econometric Models and Cross-spectral Methods 1988Statistical analysis of cointegration vectors 1990MAXIMUM LIKELIHOOD ESTIMATION AND INFERENCE ON COINTEGRATION — WITH APPLICATIONS TO THE DEMAND FOR MONEY 1979Distribution of the Estimators for Autoregressive Time Series With a Unit Root 2010Critical Values for Cointegration Tests 1981Some properties of time series data and their use in econometric model specification

Cited by

1995On market integration and liberalisation: Method and application to Ethiopia 1998Spatial integration, transport costs, and the response of local prices to policy changes in Ghana 2002Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets 2001The Extent, Pattern, and Degree of Market Integration: A Multivariate Approach for the Brazilian Rice Market 2006Modelling trends in food market integration: Method and an application to Tanzanian maize markets

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.