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Price Transmission in Canadian Fresh Fruit Market: A Time Series Analysis

Author

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  • Sarker, Rakhal
  • Chan, Brianne

Abstract

Price transmission in vertically linked agri-food markets received considerable attention in recent years. An attempt is made in this article to investigating the nature of price transmission in the Canadian apple and orange markets. Monthly import and retail prices of apples and oranges in Canada from 1996 to 2017 are used to examine the direction, speed, and magnitude of price transmission in two fresh fruits market employing cointegration and error correction modelling. The results reveal that for each commodity, there is only one longrun relationship between the upstream and downstream prices. In each case, import price influences the price at the retail level. Our results also demonstrate that there is asymmetric price transmission for apples in Canada. The margin is corrected more rapidly when it is squeezed than when the margin is expanded.

Suggested Citation

  • Sarker, Rakhal & Chan, Brianne, 2021. "Price Transmission in Canadian Fresh Fruit Market: A Time Series Analysis," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(3), July.
    • Handle: RePEc:ags:ijfaec:313363
    DOI: 10.22004/ag.econ.313363
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