Extent, pattern and degree of integration among some selected cocoa markets in West Africa: An innovative information delivery system

Regional market integration in many agricultural commodities had been extensively studied for the insight it provide into the functioning of such markets, given that they provides valuable information about the dynamics of market adjustment, and whether there exist market imperfection which may justify government interventions. This research used yearly producer price ($ per ton) data spanning from 1991 to 2014, and empirically estimated the degree of integration, volatility and forecast in West Africa cocoa markets using Cointegrtaion model, restricted VAR, GARCH family members and ARIMA model. Cointegration results showed long run price association among these markets in West Africa. The degree of market integration observed indicated that West African cocoa markets were quite competitive, thus, providing little justification for extensive and costly intervention designed to enhance competitiveness aimed at ensuring market efficiency.