Main Article Content
Abstract
The study analyses price discovery function of Rubber market of National Multi Commodity Exchange (NMCE) for the period 01/01/2015 to 31/7/2017. After identifying single co integrating vector, VECM is used to analyze long run and short run causality of rubber. The evidence shows that for there is a unidirectional causal relationship from future to spot market in long run. Granger Causality test shows that a future price leads the spot prices. The study revealed the efficiency of futures market in performing price discovery function