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Testing for Market Integration and the Law of One Price in World Shrimp Markets

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  • Vinuya, Ferdinand D.

Abstract

Using 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.

Suggested Citation

  • Vinuya, Ferdinand D., 2006. "Testing for Market Integration and the Law of One Price in World Shrimp Markets," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35351, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaso:35351
    DOI: 10.22004/ag.econ.35351
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    References listed on IDEAS

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