International Journal of Technology Enhancements and Emerging Engineering Research (ISSN 2347-4289)

IJTEEE >> Volume 2 - Issue 2, February 2014 Edition

International Journal of Technology Enhancements and Emerging Engineering Research  
International Journal of Technology Enhancements and Emerging Engineering Research

Website: http://www.ijteee.org

ISSN 2347-4289

Market Integration For Oxen Prices Using Vector Error Correction Model (Vecm) In Ethiopia

[Full Text]



Zewdie Habte



Key Words: Oxen Markets, Co-integration, Market integration, Price adjustment, VECM



Abstract: This study attempts to analyse the degree of spatial domestic oxen market integration; and examines price adjustment and prices causality. The result of Augmented Dickey Fuller (ADF) test indicates that the three variables were non-stationary at their levels, and stationary at their first difference. The Johansen’s co-integration test indicated that two co-integrating vectors implying that two oxen markets were linked together. The result of the VECM reveals that estimated adjustment vector coefficients have the correct signs (negative) at 1% significant level and imply moderate speed of price adjustment to ward equilibrium.



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