Market integration in wholesale rice markets in India Jha, Raghbendra; Murthy, KV Bhanu; Sharma, Anurag

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Authors
Jha, Raghbendra ; Murthy, KV Bhanu ; Sharma, Anurag
Subjects
common factors; market integration; government agencies
Summary
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.
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http://trove.nla.gov.au/work/39367
Work ID
39367

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