PRICE INTEGRATION IN POTATO MARKETS OF BANGLADESH

Abstract

The paper examined the pricing efficiency of potato markets in Bangladesh using EngleGranger test (EG), Cointegration Regression for Durbin Watson (CRDW) test and Error Correction Methods (ECM). For the test of pricing efficiency of potato markets, the wholesale prices were used to test cointegration using data from January 1993 to December 2005 yielding a total of 676 observations. Engle-Granger test was used to estimate the integration among the potato markets in Bangladesh. In the cointegrating set up, error correction method estimated the long-run relationship between reference markets (Dhaka) and selected markets. The cointegration regression for Durbin Watson test revealed that the wholesales potato markets in Bangladesh were integrated