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Market Integration in the North American Onion Markets: An Empirical Analysis Using Panel Data

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  • Susanto, Dwi
  • Rosson, C. Parr, III
  • Adcock, Flynn J.
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    Abstract

    This study investigates the level of market integration in the North American Onion Markets. A two-sample period analysis shows an increase in the speed of price convergence overtime, suggesting deeper market integration as NAFTA was fully implemented. Further analysis showed that U.S.-Canadian markets have experienced deeper market integration compared with U.S.-Mexican markets as well as Canadian-Mexican markets.

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    File URL: http://purl.umn.edu/34897
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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama with number 34897.

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    Date of creation: 2007
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    Handle: RePEc:ags:saeasm:34897

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    Related research

    Keywords: market integration; onion markets; panel data; price convergence; Marketing;

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    1. Parsley, David C & Wei, Shang-Jin, 1996. "Convergence to the Law of One Price without Trade Barriers or Currency Fluctuations," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1211-36, November.
    2. Doan, Darcie & Goldstein, Andrew & Zahniser, Steven & Vollrath, Thomas L. & Bolling, H. Christine, 2004. "North American Integration In Agriculture: A Survey Paper," North American Agrifood Integration: Situation and Perspectives, May 2004, Cancun, Mexico 16730, Farm Foundation.
    3. Goldberg, Pinelopi & Verboven, Frank, 2001. "Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market," CEPR Discussion Papers 2926, C.E.P.R. Discussion Papers.
    4. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    5. Stephen G. Cecchetti & Nelson C. Mark & Robert J. Sonora, 2002. "Price Index Convergence Among United States Cities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1081-1099, November.
    6. Zahniser, Steven, 2004. "Integration of North American Agriculture," Amber Waves, United States Department of Agriculture, Economic Research Service, June.
    7. Robertson, Raymond, 2004. "Defining North American Economic Integration," North American Agrifood Integration: Situation and Perspectives, May 2004, Cancun, Mexico 16732, Farm Foundation.
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