Efficiency of benguet vegetable price linkages

Issue Date

2013

Abstract

This paper examines the efficiency of vegetable price linkages across markets. Two approaches are used to test for market integration: (1) the Ravallion model, and (2) the cointegration analysis. Two sets of prices are used: the wholesale prices collected in La Trinidad, Baguio Hangar, Urdaneta, Pangasinan, Balintawak and Divisoria markets for the three vegetables for the month of November 2003 sourced from the Department of Agriculture-Cordillera Highland Agricultural Resource Management Project (DA-CHARMP) for testing cointegration and farm, wholesale and retail prices from January 1998 to March 2008 for the Ravallion model. The result of the analyses showed that there is market integration between Benguet vegetable trading centers and their market destinations. Wholesale prices from reference markets were immediately transmitted to wholesale markets in Benguet. Local price history has a significant contribution to the formation of current wholesale prices albeit in low amounts. Likewise it has been established that a stable long-term price relationship exists among the pairs of vegetable markets. The market information system and communication facilities had contributed to vegetable market integration in vegetable trading in Benguet and its market destinations. Thus, an efficient marketing information system is important to maintain and enhance the connectedness of Benguet markets with its various market destinations.

Source or Periodical Title

Journal of the International Society for Southeast Asian Agricultural Sciences

ISSN

0859-3132

Volume

19

Issue

2

Page

104-119

Document Type

Article

Physical Description

maps, tables, diagram

Language

English

Subject

Connectedness, Market information, Market integration, Reference market, Spatially efficient

Digital Copy

yes

Link to Full Text

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