co-integration analysis of groundnut prices in Greater Darfur

El agib F. Mohamed, Osman M. Babikir

Abstract


The main purpose of this study was to examine the efficiency of groundnut prices in Greater Darfur–Sudan. The study was based on weekly wholesale prices of groundnut in eight market locations; during the period of the first week of March 2006 to the last week of December 2007. The co-integration regression model, which was used to investigate price efficiency, showed that most of the pairs of groundnut markets in Greater Darfur did not presented a long-term stable equilibrium, as indicated by the presence of no co-integration (market isolation) between most of groundnut market pairs, i.e., groundnut markets in Greater Darfur were spatially price disintegrated. The empirical results also revealed that some markets pairs presented high significant levels of co-integration. This is because they are close to each other and less affected by the conflict in Darfur. The results showed that Kutum and ELgenena market were found to be isolated (disconnected) from other markets.


Full Text: PDF

Refbacks

  • There are currently no refbacks.