The Response of Ethiopian Grain Markets to Liberalization

Appendix 4 Results of unit root tests for different prices series¹

Grain	Market	Level		First Differences
Grain	Market	ADF	PP	ADF	PP
Maize	Bako	-2.21	-2.16	-7.06^a	-9.23^a
	Addis Ababa	-2.82^c	-2.84^c	-8.57^a	-10.89^a
	Dire Dawa	-2.34	-3.28^b	-9.10^a	-16.08^a
	Jimma	-2.55	-2.81^c	-7.62^a	10.50^a
	Shashemene	-2.44	-2.41	-11.16^a	11.71^a
	Mekele	-4.28^a	-3.35^b	-7.90^a	-6.92^a
White Teff	Bako	-2.84^c	-2.53	-8.31^a	-10.37^a
	Addis Ababa	-2.60^b	-2.67^c	-7.23^a	-10.02^a
	Dire Dawa	-3.19^b	-3.67^a	-9.90^a	-15.05^a
	Hosaenna	-2.37	-2.71^c	-7.79^a	-13.43^a
	Bahir Dar	-1.64	-1.78	-7.25^a	-11.64^a
	Mekele	-1.68	-1.30	-5.65^a	-5.85^a
White Wheat	Addis Ababa	-3.41^b	-3.30^b	11.64^a	-10.11^a
	Dire Dawa	-3.24^b	-4.27^a	-10.79^a	-15.61^a
	Hosaenna	-2.33	-2.00	-7.36^a	-8.96^a
	Mekele	-1.62	-1.70	-6.19^a	-7.19^a

¹The unit root tests are conducted for the period 1986:07 to 1996:06 for maize and from 1987:07 to 1996:06 for
teff and white wheat.

white

Note: a, b, and c indicate statistical significance at a probability of less than 1%, 5% and 10% respectively.

-40-

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