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An Economic Analysis on Spatial Integration of
Regional Rice Markets in Sri Lanka
Udith K. Jayasinghe-Mudalige *
ABSTRACT
This paper examines the impact of price originated in
the Central Rice Market (i.e. Colombo) on the price formation in a set
of geographically dispersed Regional Rice Market in Sri Lanka (i.e.
Anuradhapura, Kandy, Kurunegala, Nuwara-Eliya and Pollonnaruwa). It
uses the monthly retail prices of rice in these markets from January
1996 to December 2003. The outcome of the analysis suggests that prices
in these markets, irrespective of the whether they are surplus or
deficit markets, were highly integrated both in the short-run and
long-run perspectives. It has important implications for food and
agricultural policy, i.e. government interventions at the Central
Market such as food imports and export bans etc. are effective in
Regional Markets.
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*
The authors is Senior Lecturer, Department of Agribusiness Management,
Faculty of Agriculture and Plantation Management, Wayamba University of
Sri Lanka, Sri Lanka..
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Jayasinghe-Mudalige
2006 Sri Lankan
Journal of
Agricultural Economics. Volume 8 (1). Pp. 51 - 65
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