Analysis of the spatial market integration of oilseed crop markets in Myanmar

Win Pa Pa Soe, Susumu Fukuda

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study was undertaken to distinguish the nature and extent of spatial integration of selected oilseed crops markets in Myanmar using the monthly price data from January 2002 to December 2007. The objectives of this study are to appraise the price transmission between oilseed crops markets by evaluating the degree of spatial market integration and to recommend policy interventions in order to correct and improve the whole oilseed crops sector in Myanmar. The Johansen's multivariate co-integration test was used to test for long run market integration. The results indicated that the markets in the producing area are highly integrated in the long run. Dynamics of short-run price responses were examined by using vector error correction model (VECM). By examining the short-run price adjustment, it was found that almost all of the markets deviated from long run equilibrium. Long run market performance was good for all markets, but there is disequilibrium condition in the short run market integration. The imperfection of market integration is attributed to weak diffusion of market information and asymmetric price transmission on market conditions. It can be concluded that if market infrastructure like transportation, communication facilities and market information are highly improved, the efficiency of market can be accelerated.

Original languageEnglish
Pages (from-to)159-166
Number of pages8
JournalJournal of the Faculty of Agriculture, Kyushu University
Volume55
Issue number1
Publication statusPublished - Feb 2010
Externally publishedYes

Fingerprint

Myanmar
Spatial Analysis
oilseed crops
markets

All Science Journal Classification (ASJC) codes

  • Agronomy and Crop Science
  • Biotechnology

Cite this

Analysis of the spatial market integration of oilseed crop markets in Myanmar. / Soe, Win Pa Pa; Fukuda, Susumu.

In: Journal of the Faculty of Agriculture, Kyushu University, Vol. 55, No. 1, 02.2010, p. 159-166.

Research output: Contribution to journalArticle

@article{cfd7b8542f604dd6813ad9afb0d93d6c,
title = "Analysis of the spatial market integration of oilseed crop markets in Myanmar",
abstract = "This study was undertaken to distinguish the nature and extent of spatial integration of selected oilseed crops markets in Myanmar using the monthly price data from January 2002 to December 2007. The objectives of this study are to appraise the price transmission between oilseed crops markets by evaluating the degree of spatial market integration and to recommend policy interventions in order to correct and improve the whole oilseed crops sector in Myanmar. The Johansen's multivariate co-integration test was used to test for long run market integration. The results indicated that the markets in the producing area are highly integrated in the long run. Dynamics of short-run price responses were examined by using vector error correction model (VECM). By examining the short-run price adjustment, it was found that almost all of the markets deviated from long run equilibrium. Long run market performance was good for all markets, but there is disequilibrium condition in the short run market integration. The imperfection of market integration is attributed to weak diffusion of market information and asymmetric price transmission on market conditions. It can be concluded that if market infrastructure like transportation, communication facilities and market information are highly improved, the efficiency of market can be accelerated.",
author = "Soe, {Win Pa Pa} and Susumu Fukuda",
year = "2010",
month = "2",
language = "English",
volume = "55",
pages = "159--166",
journal = "Journal of the Faculty of Agriculture, Kyushu University",
issn = "0023-6152",
publisher = "Faculty of Agriculture, Kyushu University",
number = "1",

}

TY - JOUR

T1 - Analysis of the spatial market integration of oilseed crop markets in Myanmar

AU - Soe, Win Pa Pa

AU - Fukuda, Susumu

PY - 2010/2

Y1 - 2010/2

N2 - This study was undertaken to distinguish the nature and extent of spatial integration of selected oilseed crops markets in Myanmar using the monthly price data from January 2002 to December 2007. The objectives of this study are to appraise the price transmission between oilseed crops markets by evaluating the degree of spatial market integration and to recommend policy interventions in order to correct and improve the whole oilseed crops sector in Myanmar. The Johansen's multivariate co-integration test was used to test for long run market integration. The results indicated that the markets in the producing area are highly integrated in the long run. Dynamics of short-run price responses were examined by using vector error correction model (VECM). By examining the short-run price adjustment, it was found that almost all of the markets deviated from long run equilibrium. Long run market performance was good for all markets, but there is disequilibrium condition in the short run market integration. The imperfection of market integration is attributed to weak diffusion of market information and asymmetric price transmission on market conditions. It can be concluded that if market infrastructure like transportation, communication facilities and market information are highly improved, the efficiency of market can be accelerated.

AB - This study was undertaken to distinguish the nature and extent of spatial integration of selected oilseed crops markets in Myanmar using the monthly price data from January 2002 to December 2007. The objectives of this study are to appraise the price transmission between oilseed crops markets by evaluating the degree of spatial market integration and to recommend policy interventions in order to correct and improve the whole oilseed crops sector in Myanmar. The Johansen's multivariate co-integration test was used to test for long run market integration. The results indicated that the markets in the producing area are highly integrated in the long run. Dynamics of short-run price responses were examined by using vector error correction model (VECM). By examining the short-run price adjustment, it was found that almost all of the markets deviated from long run equilibrium. Long run market performance was good for all markets, but there is disequilibrium condition in the short run market integration. The imperfection of market integration is attributed to weak diffusion of market information and asymmetric price transmission on market conditions. It can be concluded that if market infrastructure like transportation, communication facilities and market information are highly improved, the efficiency of market can be accelerated.

UR - http://www.scopus.com/inward/record.url?scp=77950178298&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=77950178298&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:77950178298

VL - 55

SP - 159

EP - 166

JO - Journal of the Faculty of Agriculture, Kyushu University

JF - Journal of the Faculty of Agriculture, Kyushu University

SN - 0023-6152

IS - 1

ER -