Spatial market integration and price transmission of selected plantain markets in Ghana

Abstract

Spatial price analysis is important in explaining market performance and the degree of integration. This study therefore provides an econometric analysis of plantain markets integration. Using co integration analyses and vector error correction modelling, wholesale prices from three markets were used to test the degree of spatial market integration. The Johansen’s co integration test indicated at least three co integrating vectors implying that the plantain markets during the study period were linked together. The result of the VECM reveals that if a shock is applied to Techiman market, 47% of it will be eliminated in the next period, this result suggest a moderate speed of price adjustment between the Techiman market and the other markets analysed given the perfect adjustment threshold of 100%