Seasonal Integration and Co-Integration in the Prices of Key Aquaculture Species in the Philippines

U-Primo E. Rodriguez, Yolanda T. Garcia and Marjorie-Ann Dator Sumaya

Journal of Economics, Management & Agricultural Development, 2017, vol. 3, issue 01

Abstract: This paper investigates the relationship between retail and wholesale prices of milkfish (Chanoschanos), tilapia (Tilapianilotica), and tiger prawn (Peneaus monodon) using techniques that recognize the role of seasonal factors for testing orders of integration of and the existence of cointegration between these prices. This paper finds that seasonality plays an important role in explaining movements in the prices of these farmed species. This is so because, with the exception of the wholesale price of tiger prawn, unit roots occur at all frequencies for all of the prices that were examined. None of the pairs of prices were found to be cointegrated at all frequencies. However, the retail and wholesale prices of tilapia were found to be cointegrated at zero and annual frequencies. These findings suggest that regressions on the levels of retail and wholesale prices of milkfish and tiger prawn could lead to spurious results. Hence, price formation based on level of prices for these two aquaculture species can send wrong signals to the market stakeholders, i.e., producers, middlemen, and consumers.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/309286/files/S ... he%20Philippines.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pjemad:309286

DOI: 10.22004/ag.econ.309286

Access Statistics for this article

More articles in Journal of Economics, Management & Agricultural Development from Journal of Economics, Management & Agricultural Development (JEMAD) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().