Analysis of Beef Cattle Market Integration in the Case of Wolaita Zone, Southern Ethiopia

Abstract

This paper investigates spatial market integration in beef markets by using monthly data from September 2006 to September, 2012 and with the help of Cointegration and VECM and Granger causality test. The results of ADF indicate that the three variables were stationary and integrated of same order, i.e., I (1) at their first difference for both without drift and with drift Results of the Granger causality test indicate that Sodo and Boditi oxen market have bidirectional relationship. On the other hand, Addis Ababa beef market has unidirectional relationships with both Sodo and Boditi market. The findings suggests that, effective market information service has to be established to provide accurate and timely market information to producer and traders on current supply, demand and prices of beef cattle at national and regional levels.

Keywords: Market integration, market information