The Liberalization And Integration Of Rice Market
In Bangladesh
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The liberalization of the agricultural sector in general and the rice sub-sector in particular has been a major component of Bangladesh s structural adjustment program initiated in 1992. However the government continued to intervene in the rice sub-sector. This thesis examines whether the regional rice markets have become spatially integrated following the liberalization of the rice market. Johansen co-integration test indicated that there are at least three co-integration vectors indicating rice markets in Bangladesh during the study period are moderately linked together. The short run market...
The liberalization of the agricultural sector in general and the rice sub-sector in particular has been a major component of Bangladesh s structural adjustment program initiated in 1992. However the government continued to intervene in the rice sub-sector. This thesis examines whether the regional rice markets have become spatially integrated following the liberalization of the rice market. Johansen co-integration test indicated that there are at least three co-integration vectors indicating rice markets in Bangladesh during the study period are moderately linked together. The short run market integration as measured by the magnitude of market interdependence and the speed of price transmission between the divisional markets has been weakly integrated. Although there has been a rapid emergence of private traders, the emergence of a vibrant trading sector that would fill the gap left by the state has been slow. Traders are segmented in their trade and in general they are buying rice from within the markets and neighboring markets and sell it to deficits markets. This study should be useful to researchers and professionals in the field of marketing and agribusiness.
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