Publication:
Integration and Price Transmission in Key Food Commodity Markets in India

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dc.contributor.authorBoffa, Mauro
dc.contributor.authorVarela, Gonzalo J.
dc.date.accessioned2019-02-26T16:35:36Z
dc.date.available2019-02-26T16:35:36Z
dc.date.issued2019-02
dc.description.abstractThis paper examines patterns of market integration for food commodities in India. First, it tests the extent of domestic spatial market integration for retail and wholesale markets in 2006–14 and 2008–15, respectively, and looks at patterns of price transmission of shocks from international sources. Second, it measures vertical integration from wholesale to retail markets and tests for asymmetric speed of adjustment to shocks. Third, it examines the determinants of spatial integration. The results reveal that in India, food markets are imperfectly integrated across space, with the law of one price being systematically rejected, with heterogeneities across states and products. There is substantial co-movement between wholesale and retail prices, although integration is still imperfect in all commodities but one: rice, for which perfect vertical integration cannot be rejected. Retail prices adjust faster when wholesale prices rise than when wholesale prices fall. The analysis of the determinants of spatial integration reveals that prior to implementation of the Goods and Services Tax, the mere act of crossing a state border increased prices; unexploited gains from arbitrage persisted after considering the effects of transport costs; and information frictions and menu costs reduced market integration.en
dc.identifierhttp://documents.worldbank.org/curated/en/896891551117861857/Integration-and-Price-Transmission-in-Key-Food-Commodity-Markets-in-India
dc.identifier.doi10.1596/1813-9450-8755
dc.identifier.urihttps://hdl.handle.net/10986/31329
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8755
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCOMMODITY PRICES
dc.subjectFOOD MARKET
dc.subjectVERTICAL INTEGRATION
dc.subjectLAW OF ONE PRICE
dc.subjectSPEED OF ADJUSTMENT
dc.subjectASYMMETRIC PRICE TRANSMISSION
dc.subjectMARKET INTEGRATION
dc.subjectBORDER EFFECTS
dc.subjectPANEL COINTEGRATION
dc.subjectSHOCK TRANSMISSION
dc.subjectSPATIAL INTEGRATION
dc.subjectPRICE ADJUSTMENT
dc.subjectGOODS AND SERVICES TAX
dc.titleIntegration and Price Transmission in Key Food Commodity Markets in Indiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleIntegration and Price Transmission in Key Food Commodity Markets in India
okr.date.disclosure2019-02-25
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/896891551117861857/Integration-and-Price-Transmission-in-Key-Food-Commodity-Markets-in-India
okr.guid896891551117861857
okr.identifier.doi10.1596/1813-9450-8755
okr.identifier.externaldocumentum090224b0869d29e6_1_0
okr.identifier.internaldocumentum30858019
okr.identifier.reportWPS8755
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/896891551117861857/pdf/WPS8755.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.statistics.combined1899
okr.statistics.dr896891551117861857
okr.statistics.drstats1422
okr.topicAgriculture::Agricultural Sector Economics
okr.topicAgriculture::Commodity Risk Management
okr.topicAgriculture::Food Markets
okr.topicInternational Economics and Trade::Trade and Agriculture
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicInternational Economics and Trade::Trade and Transport
okr.unitMacroeconomics, Trade and Investment Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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