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Title: A global perspective of food market integration: A Review
Authors: Dora, M
Keywords: Price co-movement;Co-integration;Price transmission;Commodity markets;Market inter-relationships
Issue Date: 2016
Publisher: Taylor & Francis
Citation: Agrekon, 55(1-2): pp. 62-80, (2016)
Abstract: Markets are important determinants of food availability and accessibility. The extent to which they make food available, accessible and keep prices stable depends on whether or not they are integrated. If markets are well integrated, it is assumed that market forces are working properly. Considering the importance of market integration in the food sector, a lot of research has been done to test integration of food markets. This paper analyses the state of the art research on food market integration, classifies it and poses questions that future research in this field can focus on. A total of 65 published articles on food market integration from all over the world were reviewed. All the reviewed papers were published between 1990 and 2014 in high quality journals. The search for literature was based on the keyword descriptor “food or commodity market integration/price transmission/price volatility” for selected databases and websites for a period ranging from 1990 to 2014. We selected the databases for keywords in titles, abstracts, keywords list and full text. The search produced thousands of papers. We then reviewed the full text of the papers, subject to relevance, in order to select the ones related to this study. Based on relevance and consideration of the time period for this study, we finally obtained 65 articles. We then classified the articles based on year of publication, country and source of study, data sampled, methodology adopted and findings and conclusions of the articles. Findings show that the majority of research has concentrated relatively more on identifying the degree of linkages among the markets but not on its implications. The paper also identified the following factors as very important in increasing/decreasing the degree of market integration: physical infrastructure, market institutions, information, competition, market power, trade, social capital, public/government intervention and export restrictions/ban. Based on these findings the paper recommends future research on food market integration to address these questions. How does the quality of physical infrastructure/roads affect the speed of adjustment of markets in case of a shock? How has popularity of mobile phone use among the farming communities affected the degree of food market integration? How does trust and networking among farmers and traders influence price transmission and market integration? What is the effect of export restrictions on price volatility and price transmission in food markets?
ISSN: 0303-1853
Appears in Collections:Brunel Business School Research Papers

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