Price Cointegration and Leadership in Regional Tilapia and Roundscad Markets in the Philippines,1990-2007

Authors

Yolanda T. Garcia, University of the Philippines Los BanosFollow

Publication Date

2015

Abstract

This study aims to investigate the price dynamics between the wholesale and retail prices of roundscad and tilapia in the regional markets of the Philippines. It also seeks to analyze how the observed dynamics in these prices could be linked to the development in market-related infrastructures that can promote trade, e.g., telecommunication and transportation facilities. Results of the study reveal that there is a general decrease in the number of regions that show cointegrated wholesale and retail prices over time in both fish species. Moreover, price leadership under the “Granger-causality” sense (of either wholesale or retail price) seems to diminish in the recent years for both markets. These results suggest that the development in telecommunication and transportation facilities that generally facilitate the movements of fish from one supply point to another could increase price competition in these markets leading to more uniform prices, thus reducing the influence of a dominant price.

Recommended Citation

Garcia, Yolanda T. (2015) "Price Cointegration and Leadership in Regional Tilapia and Roundscad Markets in the Philippines,1990-2007," Journal of Economics, Management and Agricultural Development: Vol. 1: No. 2, Article 1.
Available at: https://www.ukdr.uplb.edu.ph/jemad/vol1/iss2/1