Market Integration of Sesame Seeds in South Asia

Ahmad³

2022

PJAAEVS

The research determined the horizontal market integration among the spatial major exporters of rubber viz. Ivory Coast, Indonesia, Philippines and Thailand in the world. Time series data from the FAO and UNCTAD data repositories that covered 51 years period (1966-2017) were utilized. The data were analyzed using descriptive and inferential statistics such as the unit root test, Johansen co-integration test and, restricted vector autoregressive (VAR) test. The empirical evidence showed presence of passive horizontal integration among the spatially separated markets. Compliance with the WTO policies makes the market prices of Ivory Coast to have effective linkages with the prices of all the selected markets; as trade war affected the price relationships between the latter markets viz. Indonesia, Philippines and Thailand; all situated in Asia. The market prices of Philippines and Thailand were not autarkic, thus the most efficient, as they are stable in the long-run and have the capacity to absolve any shocks that causes disequilibrium to its long-run equilibrium from any of the short-run. In addition, the market prices of Philippines and Thailand were more efficient as their prices were formed within the system while that of Ivory Coast and Indonesia depend on exogenous effect. The market prices of Thailand wield significant influence in price determination of rubber among the selected markets as the latter markets were relative follower in the international market. It was established that rubber marketing is useful in the international sphere as all the selected market prices witnessed persistent volatility. A high product quality will makes the market prices of Ivory Coast, Philippines and Thailand to be remunerative while poor quality coupled with sharp practices of oligopolistic middlemen will affect the market prices of Indonesia. Thus, the need for an effective marketing network that will enhance integration and efficient price communication among these markets is recommended.

Section: Resultssupporting

confidence: 78%

Horizontal Market Integration of Rubber Among Some Selected Major Exporting Developing Countries in the World

Sadiq

Ahmad³

2022

PJAAEVS

“…It can be inferred that rice is a storable commodity thus exhibiting positive rather than negative skewness. Stigler (2011), Sukati (2017 and Sadiq et al (2020a) reported that floor prices tend to generate positive skewness whereas prices at the ceiling tend to encourage negative skewness. The existence of positive skewness from a realistic point of view will assist policy design in that positive price asymmetry means that one can be very secure in setting a minimum price level.…”

Section: Summary Statistics Of the Market Pricesmentioning

confidence: 99%

“…However, the residual was not normally skewed as evident by the Doornik-Hansen test statistic which is within the plausible margin of a 10% probability level. Non-normality has been reported not to be a serious problem as data in their natural form in most cases are not normally distributed (Sadiq et al, 2017(Sadiq et al, , 2020a. Thus, the model is reliable for prediction with certainty, efficiency, and consistency.…”

Section: Degree Of Market Integrationmentioning

confidence: 99%

“…For insight into the functioning of markets, market integration in many agricultural commodities has been extensively studied (Sadiq et al, 2016a(Sadiq et al, , 2017. These studies provide valuable data on market adaptation dynamics and whether there is a market imperfection that can justify government intervention (Sadiq et al, 2016b(Sadiq et al, , 2020a.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Spatial Market Integration of Rice in the World

Sadiq¹,

Türkiye Tarımsal Araştırmalar Dergisi

Ahmad

2021

Self Cite

Time series data (1966Time series data ( 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 cointegration 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.

“…In the case of an arbitrary current shock ( 𝛿) and history(𝜔 ) , the Generalized Impulse Response Function (GIRF) is as follows [20]- [23]:…”

Section: Model Specification: Impulse Response Functionsmentioning

confidence: 99%

Nexus between Economic Phenomena and Growth Rate of Fishery Sector in Nigeria

Sadiq

Indonesian J. Agric. Res

Ahmad

2021

Time series data that spanned from 1981-2019 sourced from CBN, FAO, and UNCTAD data banks were used to determine the growth of fishery sector in Nigeria. The obtained data was analyzed using the two-step methodology of Engel and Granger, Granger causality, and the impulse response function. The result showed evidence of co-integration between fishery GDP growth rate and the economic phenomena. Also, the GDP growth rate of the sector is efficient as it established a long-run equilibrium but the slow pace at which it corrects the distortion in its equilibrium makes the state of the efficiency to be a weak one. Furthermore, the fishery’s GDP growth rate is affected by high inflationary trend, red-tapism, and poor credit utilization. Empirical evidences showed that unexpected local shocks on the economic phenomenon will have a transitory effect on FGDP growth rate, thus will die-out over time. It was observed that the effect of the internal mechanism on the growth rate is passive while the external system effect is active on the growth rate. Therefore, the study recommends the need for policy strengthening by the concerned stakeholders viz: tiding of inflationary trend, red-tapism, and ineffective credit utilization, thus enhancing the growth of the sector.