Market integration of the Malaysian poultry industry: a bound testing approach to co-integration
This paper examines market integration by analyzing transmission of price among spatially separated regional wholesale poultry markets in Peninsular Malaysia. Short-run and long-run relationship of wholesale price among regional markets was examined using bound testing approach to co-integration and...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Meghana Publications
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/29357/1/Market%20integration%20of%20the%20Malaysian%20poultry%20industry%20a%20bound%20testing%20approach%20to%20co-integration.pdf |
| _version_ | 1825947496563605504 |
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| author | Muazu, Abdulrazak Umar Mohamed, Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail |
| author_facet | Muazu, Abdulrazak Umar Mohamed, Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail |
| author_sort | Muazu, Abdulrazak Umar |
| collection | UPM |
| description | This paper examines market integration by analyzing transmission of price among spatially separated regional wholesale poultry markets in Peninsular Malaysia. Short-run and long-run relationship of wholesale price among regional markets was examined using bound testing approach to co-integration and error correction models. The statistics follows the procedure of Wald or F-statistics in a generalized Dickey-Fuller regression, which is used to test the significance of lagged levels of the variables in a conditional unrestricted Equilibrium Correction Model (ECM). Based on Wald or F-test results of the jointly lag wholesale regional market prices, there exist co-integration among the price series. The value of the F-statistics (4.176) is greater than the upper bound critical values (3.67) at 5% significance level and also significant. Therefore, a long-run equilibrium relationship was found to exist between the regional markets. Results of the pair-wise Granger-causality between regional wholesale markets indicate bidirectional causality between central as terminal market and East-coast market. There is unidirectional South region Granger-cause central wholesale market price like-wise North region market Granger-cause Central market but not on the other direction. |
| first_indexed | 2024-03-06T08:14:16Z |
| format | Article |
| id | upm.eprints-29357 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:14:16Z |
| publishDate | 2013 |
| publisher | Meghana Publications |
| record_format | dspace |
| spelling | upm.eprints-293572016-07-13T02:10:35Z http://psasir.upm.edu.my/id/eprint/29357/ Market integration of the Malaysian poultry industry: a bound testing approach to co-integration Muazu, Abdulrazak Umar Mohamed, Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail This paper examines market integration by analyzing transmission of price among spatially separated regional wholesale poultry markets in Peninsular Malaysia. Short-run and long-run relationship of wholesale price among regional markets was examined using bound testing approach to co-integration and error correction models. The statistics follows the procedure of Wald or F-statistics in a generalized Dickey-Fuller regression, which is used to test the significance of lagged levels of the variables in a conditional unrestricted Equilibrium Correction Model (ECM). Based on Wald or F-test results of the jointly lag wholesale regional market prices, there exist co-integration among the price series. The value of the F-statistics (4.176) is greater than the upper bound critical values (3.67) at 5% significance level and also significant. Therefore, a long-run equilibrium relationship was found to exist between the regional markets. Results of the pair-wise Granger-causality between regional wholesale markets indicate bidirectional causality between central as terminal market and East-coast market. There is unidirectional South region Granger-cause central wholesale market price like-wise North region market Granger-cause Central market but not on the other direction. Meghana Publications 2013-08 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/29357/1/Market%20integration%20of%20the%20Malaysian%20poultry%20industry%20a%20bound%20testing%20approach%20to%20co-integration.pdf Muazu, Abdulrazak Umar and Mohamed, Zainal Abidin and Shamsudin, Mad Nasir and Abd. Latif, Ismail (2013) Market integration of the Malaysian poultry industry: a bound testing approach to co-integration. International Journal of Agricultural Sciences and Veterinary Medicine, 1 (3). pp. 47-58. ISSN 2320-3730 http://www.ijasvm.com/previousissue.php?year=2013&issue=3 |
| spellingShingle | Muazu, Abdulrazak Umar Mohamed, Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail Market integration of the Malaysian poultry industry: a bound testing approach to co-integration |
| title | Market integration of the Malaysian poultry industry: a bound testing approach to co-integration |
| title_full | Market integration of the Malaysian poultry industry: a bound testing approach to co-integration |
| title_fullStr | Market integration of the Malaysian poultry industry: a bound testing approach to co-integration |
| title_full_unstemmed | Market integration of the Malaysian poultry industry: a bound testing approach to co-integration |
| title_short | Market integration of the Malaysian poultry industry: a bound testing approach to co-integration |
| title_sort | market integration of the malaysian poultry industry a bound testing approach to co integration |
| url | http://psasir.upm.edu.my/id/eprint/29357/1/Market%20integration%20of%20the%20Malaysian%20poultry%20industry%20a%20bound%20testing%20approach%20to%20co-integration.pdf |
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