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Price Dynamics and Cointegration in the Major Markets of Aquaculture Species in the Philippines

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  • Garcia, Yolanda T.
  • Salayo, Nerissa D.

Abstract

This study explores the interdependencies of aquaculture markets in the Philippines by establishing the price cointegration between the wholesale and retail prices of three major species commonly farmed in the country, i.e., milkfish, tilapia, and shrimp. The co-movements of wholesale prices between and among key markets for each species are also investigated. Moreover, exogeneity in prices is established using the Granger-causation model to determine the existence of price leaders among these markets. These information are crucial because they may provide a better understanding of the efficiency in price formation across production and consumption centers. Thus, aquaculture producers and traders may use these information as basis for more efficient farm management and marketing decisions. Appropriate policies for the development of markets for the three aquaculture species are also identified in this study. Such policies are expected to contribute towards more efficient pricing and distribution of benefits among market players and stakeholders. These benefits are expected to manifest through the system of grading standards for fish traded in local markets, and the choice of cost-effective technologies in grow-out and post-production practices.

Suggested Citation

  • Garcia, Yolanda T. & Salayo, Nerissa D., 2009. "Price Dynamics and Cointegration in the Major Markets of Aquaculture Species in the Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(1), pages 1-33, June.
    • Handle: RePEc:ags:phajad:199071
    DOI: 10.22004/ag.econ.199071
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    File URL: https://ageconsearch.umn.edu/record/199071/files/AJAD_2009_6_1_4Garcia.pdf
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    References listed on IDEAS

    as
    1. Pierce, David A. & Haugh, Larry D., 1977. "Causality in temporal systems : Characterization and a survey," Journal of Econometrics, Elsevier, vol. 5(3), pages 265-293, May.
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    3. Jones, William O., 1974. "Regional Analysis and Agricultural Marketing Research in Tropical Africa: Concepts and Experience," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 13(1), pages 1-26.
    4. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    5. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-552, September.
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    Cited by:

    1. Zhang, Xiaoyu & Liu, Yongfu, 2020. "The dynamic impact of international agricultural commodity price fluctuation on Chinese agricultural commodity prices," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    2. Briones, Roehlano M., 2017. "The Fertilizer Industry and Philippine Agriculture: Policies, Problems, and Priorities," Philippine Journal of Development PJD 2016 Vol. 43 No. 1b, Philippine Institute for Development Studies.
    3. Jia-Jan Lee, 2019. "The Study on the Correlation between Wholesale Price and Trading Volume in Taiwan Milkfish Market," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 7(2), pages 73-81, June.

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    Keywords

    Agricultural and Food Policy;

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