The Response of Ethiopian Grain Markets to Liberalization

Appendix 7 Results of Unit root tests for white wheat prices spreads among different markets

Spread	Level		First Differences
Spread	ADF	PP	ADF	PP
Dire Dawa - Addis	-3.92^a	-5.10^a	-10.85^a	-15.65^a
Mekele - Addis	-1.48	-1.46	-5.75^a	-7.39^a
Dire Dawa - Hosaenna	-2.77^c	-3.21^b	-10.39^a	-12.89^a
Mekele - Hosaenna	-1.80	-1.59	-7.30^a	-7.73^a
Addis - Hosaenna	-2.89^c_________	-2.77^c	-6.62^a	-8.47^a________

Note ¹The unit root tests are conducted for three time periods: period I is from 1987:07 to 1991:03, period II is
from 1991:04 to 1996:06 while the whole series is from 1987:07 to 1996:06.

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

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