Cointegration and causality analysis of tur (Pigeon pea) in neighboring states

Abstract

The study has examined co-integration and causality between retail and wholesale market prices of tur crop in Karvi district of UP and Satna district of MP by adopting Johansen’s cointegration approach, Granger causality test. The study confirms the presence of cointegration among retail and wholesale markets prices of tur in Karvi market, indicating the long-run price association between them. Further Granger causality gave additional evidence about direction of price transmission between retail and wholesale market price in Karvi district. The test confirmed presence of bidirectional causality or price transmission. The wholesale price of tur in both i.e. Karvi and Satna market are cointegrated which shown that long term and spatial association of wholesale prices