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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