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Market Integration Analysis of Japan’s Wakame Seaweed Market Before and After the Great East Japan Earthquake

Author

Listed:
  • Wakamatsu, Hiroki
  • Miyata, Tsutom

Abstract

The 2011 Japanese earthquake had a major impact on markets for seafood products. As such, this study investigates its effect on the price of a brand of wakame seaweed produced in Sanriku, an area hit hard by tsunamis. Using monthly data on Sanriku wakame prices at retail stores in 10 regions of Japan from 2005 to 2014, we undertake cointegration analysis to explore the effect of reputational damage due to radioactive contamination and changes in domestic market dynamics. Market integration analysis reveals that the market changed after the earthquake. Before the earthquake, markets in eastern Japan were leading those in the west. However, after the earthquake, markets in the east were integrated and mutually influenced one another. The earthquake also resulted in diversified distribution channels and complicated regional relationships because buyers constructed their own channels for purchasing wakame during the earthquake.

Suggested Citation

  • Wakamatsu, Hiroki & Miyata, Tsutom, 2016. "Market Integration Analysis of Japan’s Wakame Seaweed Market Before and After the Great East Japan Earthquake," MPRA Paper 70661, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:70661
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    File URL: https://mpra.ub.uni-muenchen.de/70661/1/MPRA_paper_70661.pdf
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    References listed on IDEAS

    as
    1. Frank Asche & Helge Bremnes & Cathy R. Wessells, 1999. "Product Aggregation, Market Integration, and Relationships between Prices: An Application to World Salmon Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 568-581.
    2. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    3. Max Nielsen & Jos Smit & Jordi Guillen, 2009. "Market Integration of Fish in Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 367-385, June.
    4. Frank Asche & Atle G. Guttormsen & Tom Sebulonsen & Elin H. Sissener, 2005. "Competition between farmed and wild salmon: the Japanese salmon market," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 333-340, November.
    5. Hiroki Wakamatsu, 2014. "The Impact of MSC Certification on a Japanese Certified Fishery," Marine Resource Economics, University of Chicago Press, vol. 29(1), pages 55-67.
    6. Helmut Lütkepohl & Pentti Saikkonen & Carsten Trenkler, 2001. "Maximum eigenvalue versus trace tests for the cointegrating rank of a VAR process," Econometrics Journal, Royal Economic Society, vol. 4(2), pages 1-8.
    7. Lance J. Bachmeier & James M. Griffin, 2006. "Testing for Market Integration: Crude Oil, Coal, and Natural Gas," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 55-72.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Japan; seaweed; market integration; granger casualty test; cointegration test;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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