Testing the market integration and central market hypothesis in the selected egg markets

M Ghahremanzade, H Mahmoodi
One of the main assumptions in the market integration issue is the central market hypothesis. The objective of this study is recognizing the central market of egg in the north provinces (Tehran, Mazandaran, Gilan and Golestan) and central provinces (Tehran, Gom, Gazvin and Zanjan) using Johansson cointegration test. Results showed that Tehran market has a price leadership role in the north province markets. Between the central province markets, the three markets of Gom, Zanjan and Tehran
more » ... n and Tehran constitute one market that satisfy the LOP conditions. Furthermore, the result of weak exogenous test indicated that these three markets have price leadership role in egg markets. Also, the variability of egg prices in Tehran, Gom and Zanjan markets do not affect the Gazvin egg market in the long-run period, that is treats as separable market.