PRICE INTEGRATION OF DOMESTIC AND INTERNATIONAL SESAME MARKETS-A VECTOR ERROR CORRECTION MECHANISM (VECM) APPROACH

V.P. PATEL¹*, S.M. UPADHYAY², D.V. PATEL³, M.S. SHITAP^4
1Department of Agricultural Statistics, College of Agriculture, Junagadh, Agricultural University, Junagadh, 362001, Gujarat, India
²Department of Agricultural Statistics, College of Agriculture, Junagadh, Agricultural University, Junagadh, 362001, Gujarat, India
³Department of Agricultural Statistics, College of Agriculture, Junagadh, Agricultural University, Junagadh, 362001, Gujarat, India
⁴Department of Agricultural Statistics, College of Agriculture, Junagadh, Agricultural University, Junagadh, 362001, Gujarat, India
* Corresponding Author : pvishva308@gmail.com

Received : 06-07-2022     Accepted : 27-07-2022     Published : 30-07-2022
Volume : 14     Issue : 7       Pages : 11487 - 11489
Int J Agr Sci 14.7 (2022):11487-11489

Keywords : Stationarity, Market Integration, Co-integration and Short-run disequilibrium
Academic Editor : Dr Pramod Kumar Mishra
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Department of Agricultural Statistics, Junagadh Agricultural University, Junagadh, 362001, Gujarat, India
Author Contribution : All authors equally contributed

Market integration is concerned with the spatial and temporal integration Hence spatial market performance may be evaluated in terms of the relationship between prices of spatially separated markets and spatial price behavior in regional markets may be used as a measure of overall market performance i.e., if price changes in one market are fully reflected in alternative market, then these markets are said to integrated. This study examines the long run and short run integration of domestic and international sesame markets using co-integration approach within framework of Vector Error Correction Mechanism (VECM). The data was collected for monthly wholesale price for sesame in India (Rs./quintal) (January-2006 to December-2021). For the study of price co-integration between India and world market for sesame monthly price data was collected viz., Rajkot and Unjha (Gujarat), Itawa and Kota (Rajasthan), Sheopur and Gwalior (Madhya Pradesh), Bangalore and Gulbarga (Karnataka) markets and one international market (Sudan) selected. Study concluded that Rajkot, Unjha, Itawa and Gulbarga markets exist long and short run equilibrium among the major sesame markets

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