Vol. 13 No. 2
Spatio-temporal integration of tomato markets in Karnataka state: An econometric analysis
Author(s): VASANTHI, C, K. K.R PATIL, G. R. MANJUNATHA AND B. CHINNAPPA
Abstract: The present study attempts to examine existence of spatio temporal cointegration of major tomato markets in Karnataka state. Based on the arrivals, Mysore, Bangalore, Kolar and Chintamani markets were selected. The weekly wholesale modal prices were collected for the period of two years (2014 to 2016) from Agmarknet. Error correction and Johansen cointegration analysis was performed to examine the presence of cointegration between markets. The result indicated that Mysore, Kolar and Chintamani markets are cointegrated. The coefficient of error correction term signaling the speed of adjustment of disequilibrium between spatially separated markets was higher in case of Kolar and Chintamani market (52%) and was lower in case of Kolar and Mysore market (40%). The reason for faster rate of adjustment in case of Kolar and Chintamani is due to proximity (33 kms), availability of grading facility, and scientific storage facility in case of Kolar market.
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