Araştırma Makalesi
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Spatial Market Integration of Rice in the World

Yıl 2021, , 56 - 74, 28.02.2021
https://doi.org/10.19159/tutad.810375

Öz

Time series data (1966 to 2017) that covered prices of six selected major exporting rice markets in the world were used to determine the integration of rice markets in the world. The collected data were analyzed using both descriptive and inferential statistics. In spite of the long-run price association among the selected six markets, the poor extent of market co-integration made the law of one price (LOP) not to hold i.e. elusive in these markets. Except for Pakistan and China markets, all the remaining markets were quite competitive as they have a high degree of market integration- stable equilibrium that absolved any short-run shocks that generate discontinuity and asymmetric price responses. Pakistan market has a dominant role in price formation of all its contemporary five markets while China market viz. leverage effect (inventory accumulation) is not affected by any local shock that emanated from the five markets. However, the local shock generated from China market is felt by all the selected markets. Furthermore, it was observed that international trade in rice marketing is very useful in Cambodian; USA, and China markets as volatility of their respective current prices was quite persistent. Based on the forecast, it can be inferred that the rice prices of the selected markets will adjust according to supply and demand. Therefore, for the development of a single integrated economic rice market in the world, there is a need to strengthen the linkages and interconnectedness among the major exporting rice markets for faster transmission of price and commodity management for efficient allocation. This can be achieved by enhancing the development of market infrastructure viz. assaying, grading, sorting, standardization, quality assurance, physio-sanitary standardization; use of e-trade and e-commerce, value addition, transportation, and other back-end supply chain.

Kaynakça

  • Anonymous, 2020. Global Market Analysis. Foreign Agricultural Services/USDA.
  • Ardeni, P.G., 1989. Does the law of one price really hold for commodity prices? American Journal of Agricultural Economics, 71: 661-669.
  • Beag, F.A., Singla, N., 2014. Cointegration, causality and impulse response analysis in major Apple markets of India. Agricultural Economics Research Review, 27(2): 289-298.
  • Engle, R.F., Granger, C.W.J., 1987. Co-integration and error correction: representation, estimation and testing. Econometrica, 55(2): 251-276.
  • Ghafoor, A., Mustafa, K., Mushtaq, K., Abedulla, 2009. Cointegration and causality: An application to major mango markets in Pakistan. Lahore Journal ofEconomics, 14(1): 85-113.
  • Granger, C.W.J., 1969. Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 37(1): 424-438.
  • Hussaini, B., Ashfaq, M., Abbas, M., Mahmood, K., Mahmood, M.A., 2010. Market integration of gram in Pakistan. Pakistan Journal of Agricultural Research, 23(1-2): 78-82.
  • Johansen, S., 1988. Statistical analysis of co-integration vectors. Journal of Economic Dynamics and Control, 12(2-3): 231-254.
  • Lanfranco, B.A., Ferraro, B., Rostán, F., 2019. Cointegration and price linkages in the Mercosur beef cattle markets. International Journal of Food and Agricultural Economics, 7(2): 159-174.
  • Mahalle, S.L., Shastri, S., Kumar, S., 2015. Integration of wheat markets in Maharashtra. Agricultural Economics Research Review, 28(1): 179-187.
  • Paul, R.K., 2014. Forecasting wholesale price of pigeon pea using long memory time-series models. Agricultural Economics Research Review, 27(2): 167-176.
  • Rahman, M.M., Shahbaz, M., 2013. Do imports and foreign capital inflows lead economic growth? Cointegration and causality analysis in Pakistan. South Asia Economic Journal, 14(1): 59-81.
  • Reddy, A., 2012. Market integration of grain legumes in India: The case of the chicken pea market. SAARC Journal of Agriculture, 10(12): 11-29.
  • Sadiq, M.S., Karunakaran, N., Singh, I.P., 2018a. Integration of banana markets in India. ICTACT Journal on Management Studies, 4(2): 764-781.
  • Sadiq, M.S., Singh, I.P., Ahmad, M.M., 2020a. Market integration of sesame seeds in South Asia. Alanya Academic Review Journal, 4(1): 143-155.
  • Sadiq, M.S., Singh, I.P., Ahmad, M.M., 2020b. The politics of rice production in Nigeria-can Nigeria become a net exporter or will remained a net importer? Economic Affairs, 65(3): 309-322.
  • Sadiq, M.S., Singh, I.P., Aminu, S., Grema, I.J., 2017. Volatility and price discovery of palm oil in international markets under different trade regime. Journal of Agricultural Economics, Environment and Social Sciences, 3(1): 33-50.
  • Sadiq, M.S., Singh, I.P.,Aminu, S., Umar, S.M., Grema, I.J., Usman, B.I., Isah, M.A., Lawal, A.T., 2016a. Extent, pattern and degree of integration among some selected cocoa markets in West Africa: An innovative information delivery system. Journal of Progressive Agriculture, 7(2): 22-39.
  • Sadiq, M.S., Singh, I.P., Aminu, S., Umar, S.M., Grema, I.J., Usman, B.I., Isah, M.A., Lawal, A.T., 2016b. Price transmission, volatility and discovery of gram in some selected markets in Rajasthan State, India. International Journal of Environment, Agriculture and Biotechnology, 1(1): 74-89.
  • Sadiq, M.S.,Singh, I.P., Singh, N.K., Yakubu, G.M., 2018b. Improving efficiency and TFP of lowland paddy rice farmers in Kwara State of Nigeria. Journal of Agricultural Sciences, 13(2): 110-129.
  • Stigler, M., 2011. Commodity prices: Theoretical and empirical properties. In: A. Prakesh (Ed.), FAO Report on Safeguarding Food Security in Volatile Global Markets, 2: 27-43.
  • Sukati, M., 2017. Analysis of maize price volatility and price pass through in Swaziland: Implications for price stabilization policies. Journal of Economics and International Business Management, 5(1): 1-13.
  • Workman, D., 2020. Rice Exports by Country. (www.worldstopexports.com/rice-exports-country/), (Date of access: 10.10.2020).

Spatial Market Integration of Rice in the World

Yıl 2021, , 56 - 74, 28.02.2021
https://doi.org/10.19159/tutad.810375

Öz

Time series data (1966 to 2017) that covered prices of six selected major exporting rice markets in the world were used to determine the integration of rice markets in the world. The collected data were analyzed using both descriptive and inferential statistics. In spite of the long-run price association among the selected six markets, the poor extent of market co-integration made the law of one price (LOP) not to hold i.e. elusive in these markets. Except for Pakistan and China markets, all the remaining markets were quite competitive as they have a high degree of market integration- stable equilibrium that absolved any short-run shocks that generate discontinuity and asymmetric price responses. Pakistan market has a dominant role in price formation of all its contemporary five markets while China market viz. leverage effect (inventory accumulation) is not affected by any local shock that emanated from the five markets. However, the local shock generated from China market is felt by all the selected markets. Furthermore, it was observed that international trade in rice marketing is very useful in Cambodian; USA, and China markets as volatility of their respective current prices was quite persistent. Based on the forecast, it can be inferred that the rice prices of the selected markets will adjust according to supply and demand. Therefore, for the development of a single integrated economic rice market in the world, there is a need to strengthen the linkages and interconnectedness among the major exporting rice markets for faster transmission of price and commodity management for efficient allocation. This can be achieved by enhancing the development of market infrastructure viz. assaying, grading, sorting, standardization, quality assurance, physio-sanitary standardization; use of e-trade and e-commerce, value addition, transportation, and other back-end supply chain.

Kaynakça

  • Anonymous, 2020. Global Market Analysis. Foreign Agricultural Services/USDA.
  • Ardeni, P.G., 1989. Does the law of one price really hold for commodity prices? American Journal of Agricultural Economics, 71: 661-669.
  • Beag, F.A., Singla, N., 2014. Cointegration, causality and impulse response analysis in major Apple markets of India. Agricultural Economics Research Review, 27(2): 289-298.
  • Engle, R.F., Granger, C.W.J., 1987. Co-integration and error correction: representation, estimation and testing. Econometrica, 55(2): 251-276.
  • Ghafoor, A., Mustafa, K., Mushtaq, K., Abedulla, 2009. Cointegration and causality: An application to major mango markets in Pakistan. Lahore Journal ofEconomics, 14(1): 85-113.
  • Granger, C.W.J., 1969. Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 37(1): 424-438.
  • Hussaini, B., Ashfaq, M., Abbas, M., Mahmood, K., Mahmood, M.A., 2010. Market integration of gram in Pakistan. Pakistan Journal of Agricultural Research, 23(1-2): 78-82.
  • Johansen, S., 1988. Statistical analysis of co-integration vectors. Journal of Economic Dynamics and Control, 12(2-3): 231-254.
  • Lanfranco, B.A., Ferraro, B., Rostán, F., 2019. Cointegration and price linkages in the Mercosur beef cattle markets. International Journal of Food and Agricultural Economics, 7(2): 159-174.
  • Mahalle, S.L., Shastri, S., Kumar, S., 2015. Integration of wheat markets in Maharashtra. Agricultural Economics Research Review, 28(1): 179-187.
  • Paul, R.K., 2014. Forecasting wholesale price of pigeon pea using long memory time-series models. Agricultural Economics Research Review, 27(2): 167-176.
  • Rahman, M.M., Shahbaz, M., 2013. Do imports and foreign capital inflows lead economic growth? Cointegration and causality analysis in Pakistan. South Asia Economic Journal, 14(1): 59-81.
  • Reddy, A., 2012. Market integration of grain legumes in India: The case of the chicken pea market. SAARC Journal of Agriculture, 10(12): 11-29.
  • Sadiq, M.S., Karunakaran, N., Singh, I.P., 2018a. Integration of banana markets in India. ICTACT Journal on Management Studies, 4(2): 764-781.
  • Sadiq, M.S., Singh, I.P., Ahmad, M.M., 2020a. Market integration of sesame seeds in South Asia. Alanya Academic Review Journal, 4(1): 143-155.
  • Sadiq, M.S., Singh, I.P., Ahmad, M.M., 2020b. The politics of rice production in Nigeria-can Nigeria become a net exporter or will remained a net importer? Economic Affairs, 65(3): 309-322.
  • Sadiq, M.S., Singh, I.P., Aminu, S., Grema, I.J., 2017. Volatility and price discovery of palm oil in international markets under different trade regime. Journal of Agricultural Economics, Environment and Social Sciences, 3(1): 33-50.
  • Sadiq, M.S., Singh, I.P.,Aminu, S., Umar, S.M., Grema, I.J., Usman, B.I., Isah, M.A., Lawal, A.T., 2016a. Extent, pattern and degree of integration among some selected cocoa markets in West Africa: An innovative information delivery system. Journal of Progressive Agriculture, 7(2): 22-39.
  • Sadiq, M.S., Singh, I.P., Aminu, S., Umar, S.M., Grema, I.J., Usman, B.I., Isah, M.A., Lawal, A.T., 2016b. Price transmission, volatility and discovery of gram in some selected markets in Rajasthan State, India. International Journal of Environment, Agriculture and Biotechnology, 1(1): 74-89.
  • Sadiq, M.S.,Singh, I.P., Singh, N.K., Yakubu, G.M., 2018b. Improving efficiency and TFP of lowland paddy rice farmers in Kwara State of Nigeria. Journal of Agricultural Sciences, 13(2): 110-129.
  • Stigler, M., 2011. Commodity prices: Theoretical and empirical properties. In: A. Prakesh (Ed.), FAO Report on Safeguarding Food Security in Volatile Global Markets, 2: 27-43.
  • Sukati, M., 2017. Analysis of maize price volatility and price pass through in Swaziland: Implications for price stabilization policies. Journal of Economics and International Business Management, 5(1): 1-13.
  • Workman, D., 2020. Rice Exports by Country. (www.worldstopexports.com/rice-exports-country/), (Date of access: 10.10.2020).
Toplam 23 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Bölüm Araştırma Makalesi / Research Article
Yazarlar

Sanusi Sadıq 0000-0003-4336-5723

Invinder Paul Sıngh Bu kişi benim 0000-0002-1886-5956

Muhammad Makarfi Ahmad Bu kişi benim 0000-0003-4565-0683

Yayımlanma Tarihi 28 Şubat 2021
Yayımlandığı Sayı Yıl 2021

Kaynak Göster

APA Sadıq, S., Sıngh, I. P., & Ahmad, M. M. (2021). Spatial Market Integration of Rice in the World. Türkiye Tarımsal Araştırmalar Dergisi, 8(1), 56-74. https://doi.org/10.19159/tutad.810375
AMA Sadıq S, Sıngh IP, Ahmad MM. Spatial Market Integration of Rice in the World. TÜTAD. Şubat 2021;8(1):56-74. doi:10.19159/tutad.810375
Chicago Sadıq, Sanusi, Invinder Paul Sıngh, ve Muhammad Makarfi Ahmad. “Spatial Market Integration of Rice in the World”. Türkiye Tarımsal Araştırmalar Dergisi 8, sy. 1 (Şubat 2021): 56-74. https://doi.org/10.19159/tutad.810375.
EndNote Sadıq S, Sıngh IP, Ahmad MM (01 Şubat 2021) Spatial Market Integration of Rice in the World. Türkiye Tarımsal Araştırmalar Dergisi 8 1 56–74.
IEEE S. Sadıq, I. P. Sıngh, ve M. M. Ahmad, “Spatial Market Integration of Rice in the World”, TÜTAD, c. 8, sy. 1, ss. 56–74, 2021, doi: 10.19159/tutad.810375.
ISNAD Sadıq, Sanusi vd. “Spatial Market Integration of Rice in the World”. Türkiye Tarımsal Araştırmalar Dergisi 8/1 (Şubat 2021), 56-74. https://doi.org/10.19159/tutad.810375.
JAMA Sadıq S, Sıngh IP, Ahmad MM. Spatial Market Integration of Rice in the World. TÜTAD. 2021;8:56–74.
MLA Sadıq, Sanusi vd. “Spatial Market Integration of Rice in the World”. Türkiye Tarımsal Araştırmalar Dergisi, c. 8, sy. 1, 2021, ss. 56-74, doi:10.19159/tutad.810375.
Vancouver Sadıq S, Sıngh IP, Ahmad MM. Spatial Market Integration of Rice in the World. TÜTAD. 2021;8(1):56-74.

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