Integration of the national food market
AbstractMarket integration is analyzed using the time series of the cost of 25 item basket of food staples for the 1994-2000 period across 11 economic regions of Russia. It is shown that 27% of regions are integrated in the national market and that there are 42% of integrated pairs of regions. The effects of factors impeding integration are assessed with a threshold model. Transaction costs of arbitration are found to vary from 15 to 25% of the cost of the basket. These results are compared with those obtained by use of the food component of consumer prices; a conclusion is made that this component does not make a good proxy for prices in the national food market.
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Bibliographic InfoArticle provided by Institute of Economics and Industrial Engineering of Siberian Branch of RAS in its journal Journal "Region: Economics and Sociology".
Volume (Year): 2 (2004)
Issue (Month): ()
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Web page: http://region.socionet.ru/
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