Abstract

The study assessed the integration between mustard market pairs in Rajasthan state of India using monthlymustard price series ofsix markets from2006-2014. The co-integration tests results indicate, Tonk and Alwar; Tonk and Dausa; Bharatpur and Alwar and Sriganganagar and Dausa are integrated in the long run at lag one. Tonk and Bharatpur and Bharatpur and Dausa are also integrated in the long run at lag two. Error correction model showed that the lowest speed of adjustment towards long run equilibrium was from Tonk to Bharatpur at rate of 43.2%. The highest speed of adjustment was 103.8%, runningBharatpur to Alwar market towards long run equilibrium. Impulse response function results shows when an unexpected positive shock is given to market price in Tonk, Sriganganagar and Bharatpur, the response thereof from other trading markets will be permanent over a period of twelve months.

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