Economic Studies - Research Publications
Permanent URI for this collectionhttps://kr.cup.edu.in/handle/32116/141
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Item Market integration and price transmission in wheat markets of�India: a transaction cost approach(Emerald Publishing, 2022-11-02T00:00:00) Ahmed, Mumtaz; Singla, Naresh; Singh, KulwinderPurpose: Wheat, which is one of the major staple food grain crops in India, continues to depict occasional fluctuation in the prices though Union government has adopted administered price policy for wheat by intervening in its procurement at assured prices and distribution. Such fluctuations in prices are usually attributed to inefficient functioning of the agricultural markets. Since spatially separated markets also play an important role to determine efficiency of the agricultural markets, the study has used market integration as one of the tools to analyze the price transmission across the spatially separated markets to identify causes of price fluctuations and suggest ways to stabilize wheat prices. Design/methodology/approach: The study utilizes monthly wholesale prices for January, 2006 to May, 2016 for dara wheat. First, the study employs augmented Dickey and Fuller (ADF), Phillips and Perron (PP) and Kwiatkowski, Phillips, Schmidt and Shin (KPSS) tests to check stationarity in wheat prices. Second, Johansen's cointegration test is applied to assess the integration of wholesale prices between selected pairs of wheat markets to determine long-run relationship among them. Third, Granger casualty test is used to find the direction of causality between the wheat market pairs. Finally, threshold vector error correction model (TVECM) and likelihood ratio (LR) tests are employed to examine long-run adjustment of prices towards the equilibrium in selected wheat markets. Findings: Since wheat wholesale prices for the selected markets are found to be integrated of the order one, that is [I(1)], Johansen's test of cointegration is employed and its findings reveal that the selected wheat market pairs exhibit cointegration and show a long-run price association among themselves. There exists a bi-directional causality among the wheat market pairs. Since LR test is in favor of threshold model (except for Etawah�Delhi pair), one and two threshold models were also performed accordingly. Findings show that wholesale prices of wheat in Delhi markets remain higher than the prices of all other regional markets as regional markets are found to adjust their prices towards Delhi market. Distance of the wheat markets from each other is directly associated with threshold parameters, which are analogous to the transaction costs. Geographically dispersed wheat markets incorporate high transaction and vice versa. Research limitations/implications: The study argues that there is need to improve rural infrastructure and connectivity of the agricultural markets and remove market asymmetries through unified market regulating mechanisms across the states. This will enable price adjustment process from primary wholesale markets (in production regions) to the secondary wholesale markets (in scarcity regions) quickly. Originality/value: The contribution of the study in the existing literature lies in the fact that there are no empirical evidences in the context of India that use price transmission as a tool of market integration among spatially separated wheat markets using TVCEM as this model examines role of transaction costs in efficient functioning of the agricultural markets. � 2022, Emerald Publishing Limited.Item Financial Performance of Micro-Finance Institutions in India(The Society of Economics and Development, 2021-10-16T00:00:00) Singla, Naresh; Ahmed, Mumtaz; Singh, KulwinderMicro-finance institutions (MFIs) in most of the developing countries, including India, are seen as essential tools to eradicate poverty and raise the standard of living of rural poor. Therefore, the sound functioning of MFIs has a huge long-run impact on the outreach of the rural poor. However, the performance of MFIs is often measured in terms of their social impact on the rural poor, while the financial indicators are ignored. In this context, the study analysed the major determinants of the financial performance of the 20 MFIs in India using panel regression. The results of the study revealed that financial indicators such as operating self-sufficiency, return on assets, and size (assets of the MFIs) had a positive impact on increasing the performance of MFIs. Further, the active borrowers increase efficiency, while passive borrowers had a negative impact on the performance of the MFIs. Similarly, a low level of debt to equity ratio, operating expenses to assets ratio, and low percentage of women borrowers could lead to the sound financial performance of MFIs. � 2021 The Society of Economics and Development, except certain content provided by third parties.Item AN ECONOMIC ANALYSIS OF MARKET INTEGRATION OF SELECTED AGRICULTURAL COMMODITIES IN INDIA(Central University of Punjab, 2018) Ahmed, Mumtaz; Singla, Naresh