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What causes asymmetric price transmission in agro-food sector? Meta-analysis perspective

Author

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  • Zoltan Bakucs

    () (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences)

  • Imre Ferto

    () (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences)

  • Jan Falkowski

    () (Faculty of Economic Sciences University of Warsaw, Poland)

Abstract

There now exists a large literature on price transmission in agro-food sectors. However, a great majority of empirical studies focus on the existence of asymmetry and, by and large, do not allow investigating the reason for its presence or absence. This is in sharp contrast to the theoretical literature that provides a number of explanations for why we should expect (a)symmetry. In response to this, this paper tries to uncover the reasons for asymmetric price transmission in the agro-food chain. To do so, we use meta-analysis drawing on the existing studies from this area. Our focus is on the organizational and institutional characteristics of the agro-food supply chain. Our findings suggest that asymmetric price transmission in farm-retail relationship is more likely to occur in sectors/countries with more fragmented farm structure, higher governmental support and more restrictive regulations on price controls in retail sector. On the other hand, more restrictive regulations on entry barriers in retail sector and relative importance of the sector in question tend to promote symmetric farm-retail price transmission. The latter is also more likely in the presence of strong processing industry.

Suggested Citation

  • Zoltan Bakucs & Imre Ferto & Jan Falkowski, 2013. "What causes asymmetric price transmission in agro-food sector? Meta-analysis perspective," IEHAS Discussion Papers 1303, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  • Handle: RePEc:has:discpr:1303
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    References listed on IDEAS

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    Cited by:

    1. Pratap Kumar JENA, 2016. "Commodity market integration and price transmission: Empirical evidence from India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 283-306, Autumn.
    2. Pratap Kumar JENA, 2016. "Commodity market integration and price transmission: Empirical evidence from India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 283-306, Autumn.
    3. Ogundari, Kolawole & Abdulai, Awudu, 2012. "A meta-analysis of the response of calorie demand to income changes," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123287, International Association of Agricultural Economists.
    4. Minarelli, Francesca & Galioto, Francesco & Raggi, Meri & Viaggi, Davide, 2016. "Modelling asymmetric information in a food supply chain within Emilia Romagna Region," 149th Seminar, October 27-28, 2016, Rennes, France 245071, European Association of Agricultural Economists.
    5. Amikuzuno, Joseph & Ogundari, Kolawole, 2013. "Price transmission Analysis and Associated Policy in Sub-Saharan Africa’s Agricultural Markets: What Does the Literature Say?," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160479, African Association of Agricultural Economists (AAAE).

    More about this item

    Keywords

    price transmission; meta-regression analysis; agro-food supply chain;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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