Abstract
This paper examined the market integration through price signaling in selected chickpea markets of Punjab using Johnson Cointegration technique. The average monthly wholesale prices of seven Chickpea markets Sargodha, Faisalabad, Lahore,
Multan, Layyah, Bhakhar, and Rawalpindi were used for analysis for the period January, 2007-November, 2018. The empirical
results show that six major chickpea markets were integrated with each other i.e., there exist law of one price. Sargodha market
emerged as the source market for other six markets – may be called as target markets. The Granger-Casualty results show,
there exists bidirectional causality among all markets except Sargodha and Multan market, where exist Uni-directional
causality. The study also verified the dynamic of price transmission by using vector autoregressive (VAR) i.e., a 10 percent
increase in the price shock to Sargodha market transmitted to the all other chickpea markets. The findings of the study
suggested, chickpeas markets in Punjab are working efficiently and there is no need of direct state intervention in markets to
improve the efficiency
Khalid Mushtaq, Asghar Ali, Shahzad Hameed, Abdul Ghafoor, Maqsood Hussain. (2020) EVALUATING THE EFFICIENCY OF CHICKPEA MARKETS IN PUNJAB, PAKISTAN, Pakistan Journal of Agricultural Sciences, Volume 57, Issue 2.
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