3.2. Pineapple Market Integration in Kenya
Table 1 presents pineapple market integration results and only contains those relationships that indicate some level of integration, all other market pairs in the study did not show any integration. Parameters P2t-1 and P2t-2 represent Pjt-1 and Pjt-2 or Pit-1 and Pit-2 depending on the market being regarded as local or reference.The statistical significance of the coefficient of lagged exogenous variables Pjt-1 and Pjt-2 for equation (2) and Pit-1 and Pit-2 for equation (3) indicates whether or not there is market integration between two markets. The values of the indices of market concentration (imc) also called Timer Index of market integration (Ditto,1994) indicate whether the integration is low or high. An imc of < 1 or > 1 indicates a high or low market integration of p airs of markets, respectively. In most cases, the co efficients of P2t-1 and P2t-2 are n egative but significant. Coefficient for the distance between markets, and those for prices between the
most producing markets are non significant.