BANANA MARKET INTEGRATION AND COINTEGRATION: IMPLICATIONS FOR SUSTAINABLE AGRICULTURAL DEVELOPMENT

The prices are controlled, guide and determine level of consumption, production, decisions of the market over time, form and places in the market-driven economy. Therefore, the market integration of agricultural commodities is deeply investigated which added valuable evidence regarding the mechanism of the market modification and justified government intervention. Morover, this paper was estimated the level of market integration in the provincial banana markets in Pakistan by using the Augmented dickey-fuller (ADF) and Johanson's Cointegration analysis and monthly wholesale price series from January 1981 to December 2020 are used to conduct the research. Furthermore, results of this study indicated that, banana provincial markets are well integrated and Hyderabad market is the dominant market in Pakistan. In addition to that, the other three provincial markets are well integrated with Hyderabad market. Furthermore, it was concluded that, higher levels of market integration between the banana market are fairly sustainable and viable. However, the banana markets will be further improved the market efficiency and enhance competitiveness by public and private sectors intervention.