TESTING FOR PHILIPPINES RICE MARKET INTEGRATION - A MULTIPLE COINTEGRATION APPROACH

In this paper we demonstrate the use of Johansen's multiple cointegrat ion technique as a test for spatial market integration. We argue that this technique overcomes many of the limitations of previous methods f or testing market integration. An application of this approach to the Philippines rice markets indictes that these markets are generally wel l integrated in the long-run with Manila as the dominant market. Howev er, there are other inter-regional relationships which are important i n the short term.