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Table 7 Normalized long-run elasticity and speed of adjustment coefficients at threshold vector error correction model

From: Spatial market integration of rice in Bangladesh in the presence of transaction cost

Market pairs (right-hand side market is normalized as explanatory market) Long-run elasticity (β) Threshold value (γ) Speed of the adjustment in regime 2 (R2)
Market I (α1) Market II (α2)
Mymensingh-Dhaka 1.098** − 4.111* − 0.020 0.290**
Rajshahi-Dhaka 0.968** − 3.959* − 0.019 − 0.209**
Khulna-Dhaka 0.970** 3.508* − 0.739*** 0.304
Chattogram-Dhaka 0.974** 4.291* 0.014 − 0.249***
Rajshahi-Mymensingh 0.868** − 3.570** − 0.019 − 0.121*
Chattogram-Mymensingh 0.874** − 4.129* − 0.009 0.027
Khulna-Mymensingh 0.863** − 3.649** − 0.044* − 0.006
Khulna-Rajshahi 0.991** 3.151*** − 0.118** − 0.041
Chattogram-Rajshahi 1.004** − 2.067* − 0.396*** − 0.149**
Chattogram-Khulna 1.001** − 4.132*** − 0.128*** 0.030
  1. *, ** and *** indicate the null hypotheses are rejected at 1%, 5% and 10% level of significance; Market I and Market II indicate the first and second market in the market pairs, for example Mymensingh-Dhaka market pair, Mymensingh market is the market I and Dhaka market is the Market II. Eicker–White standard errors are used to get the significance level of the speed of adjustments