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Symmetry in farm-retail price transmission: pork in Malaysia

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  • Tey, (John) Yeong-Sheng

Abstract

This study intends to determine the farm-retail price transmission behaviors of pork in Malaysia to serve as a good implication for pork pricing system in Malaysia. Using data from January 1997 to December 2008, both the Houck and ECM approaches were found symmetric where a change in farm price of pork was observed to have similar change in retail price of pork in Malaysia. The price setting system of pork can therefore be further described by the estimated price transmission elasticities where retail price is very sensitive to the changes in farm price. A change in farm price is expected to result in a bigger change in retail price of pork while other things remain unchanged.

Suggested Citation

  • Tey, (John) Yeong-Sheng, 2009. "Symmetry in farm-retail price transmission: pork in Malaysia," MPRA Paper 16693, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:16693
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    symmetry; pork; elasticity of price transmission;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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