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Spatial Integration On The Hungarian Milk Market

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  • Bakucs, Lajos Zoltan
  • Ferto, Imre

Abstract

The geographical separation of markets is of a special importance in agriculture, as often, agricultural products are bulky and/or perishable, and the place of consumption may be different from that of production, implying possibly expensive transport costs (SEXTON ET AL., 1991). The imperfectly integrated markets may send wrong price information signals to producers and other actors of the marketing chain, resulting incorrect production and marketing decisions. The aim of the article is to map the horizontal integration on the milk market in the Hungarian milk market using up-to-date Vector Error Correction (VECM) and Threshold Error Correction (TEVCM) methods.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 104th Seminar, September 5-8, 2007, Budapest, Hungary with number 7832.

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Date of creation: 2007
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Handle: RePEc:ags:eaa104:7832

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Related research

Keywords: horizontal integration; transition economy; threshold cointegration; Livestock Production/Industries; Marketing;

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  1. von Cramon-Taubadel, Stephan & Loy, Jens-Peter & Meyer, Jochen, 2006. "Data Aggregation and Vertical Price Transmission: An Experiment with German Food Prices," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25291, International Association of Agricultural Economists.
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Cited by:
  1. Zoltan Bakucs & Jan Falkowski & Imre Ferto, 2012. "Does Farm and Processing Industry Structure Matter for Price Transmission? Some Evidence From Transition Countries: A Comparison of Dairy Sectors in Hungary and Poland," IEHAS Discussion Papers 1212, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  2. Rumankova, Lenka, 2012. "Examination of existence of the law of one price at Czech meat markets," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(1), March.
  3. Bakucs, Lajos Zoltan & Falkowski, Jan & Ferto, Imre, 2010. "Milk Market Integration between Hungary and Poland," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91809, Agricultural Economics Society.
  4. Zoltán Bakucs, Lajos & Fertő, Imre & Szabó, Gábor G., 2010. "Contractual relationships in the Hungarian milk sector," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52700, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  5. Ihle, Rico & von Cramon-Taubadel, Stephan, 2008. "A Comparison of Threshold Cointegration and Markov-Switching Vector Error Correction Models in Price Transmission Analysis," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37603, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

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