ANALYSIS OF THE INTEGRATION OF LOCAL CORN MARKETS IN BENIN COLLINES DEPARTMENT

Casemir B. HOUNGBEDJI and Gervais E. DJODJO

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ANALYSIS OF THE INTEGRATION OF LOCAL CORN MARKETS IN BENIN COLLINES DEPARTMENT

 

Casemir B. HOUNGBEDJI and Gervais E. DJODJO

 

Laboratory of Research in Economics and Management (LAREG), Faculty of Economics and Management, University of Parakou, Box P: 123 Parakou, Benin.

*Corresponding author

 

A R T I C L E  I N F O

Article Type: Research

Received: 07, Dec. 2018.

Accepted: 02, Feb. 2018.

Published: 05, Jun. 2020.

 

 

 A B S T R A C T

This article aims to analyze the integration level of corn markets in collines in Benin. To achieve this, the methodology is to study the order of price integration, then to verify the co-integration of series and finally to test the asymmetry in the transmission of price shocks in the corn market thanks to a threshold autoregressive model  (TAR). The results indicate that Glazoue regional market prices are co-integrated with local market maize prices in the collines department. Also, there is an asymmetrical co-integration relationship between the Glazoue market and other markets, confirming the existence of transaction costs which hinder the long-term relationship between the price series of these markets. In view of the results obtained, it is necessary for the authorities to improve road infrastructures, and to establish an efficient information system on the markets.

 
Keywords:

Integration, price transmission, agricultural market, TAR, Collines

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