Spatial Integration of Fruit and Vegetables Markets in Bangladesh

The study was undertaken to discern the nature and extent of spatial integration of fruit and vegetables markets in Bangladesh, precise evaluation of which remains pending till to date. Ravallion model, well-suited for radial market structure in Bangladesh (regional markets surrounding central market, Dhaka), was applied to the monthly wholesale price data of potato and banana. The model provided insights into the dynamics of market integration, which a simple correlation model failed to do. Except one regional market for potato, all the remaining markets for both potato and banana were found not to be integrated with central market within the domain of monthly wholesale prices, though none of the selected markets was segmented from the central market. Seasonality of production was found to be an important source of weaker market integration. The hypothesis of no seasonality was rejected for 7 out of 8 regional potato markets and 4 out of 8 regional banana markets. Overall, integration of banana markets was found to be poorer than that of potato markets.Article信州大学農学部紀要. 36(1):31-38(2000)journal articl