Abstract
The present study empirically examines the dynamic interrelationships among the prices of major cocoons markets viz. Ramanagaram (Karnataka), Sidlaghatta (Karnataka), Hindupura (Andra Pradesh) and Dharmapuri (Tamil Nadu) in terms of market integration. The monthly average prices of bivoltine mulberry cocoons for a period between April 2009 and February 2021 were considered for the present study. The Augmented Dickey-Fuller (ADF) (tau) test indicated that all the price series were non-stationary at level, but were stationary after first difference. The Johansen's multivariate cointegration procedure revealed existence of cointegration among the prices of cocoon markets. The Vector Error Correction Models (VECM) revealed a long run price causality running from Ramanagaram market to all other markets considered under study. The Granger causality test indicated a unidirectional causality running from Ramanagaram market to all markets and not vice versa. The prices prevailed in Ramanagaram market controlled and decided the current prices of bivoltine cocoons both in long run and short run in all other markets considered for the study.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
