Dynamics of wheat market integration in Northern Punjab, Pakistan

Abstract

This paper presents some empirical evidence of wheat market integration in Northern Punjab by applying the cointegration technique. It is found that there exists long-run market integration between Lahore as a central market with all the feeder markets of Faisalabad, Sargodha, Gujranwala, Gujrat, and Sialkot. Those market pairs with good road/rail connections and good flow of information have better market integration with each other than the other market pairs, which have partial integration due to weak infrastructure and flow of information. The conclusion suggests that the government needs to improve infrastructure and information system, including construction of new transportation facilities. © The Pakistan Development Review.