Testing for Market Integration and the Law of One Price in World Shrimp Markets
AbstractUsing import price data from Japan, United States, and the European Union, we test if shrimp price movements in these markets indicate an integrated world market for shrimp. We utilize cointegration techniques to investigate if prices in these markets share a common stochastic trend and if the law of one price holds. Results point to strong linkage among Japanese, American, and European markets. The results on the aggregated shrimp markets are checked against the results at a more disaggregated level. Data from wholesale markets in Tokyo, New York, and Europe for specific shrimp products confirm the integrated nature of shrimp markets. Evidence also exists in support of the law of one price in shrimp markets.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida with number 35351.
Date of creation: 2006
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