Detecting Asymmetric Price Transmission with Consistent Threshold along the Fish Supply Chain

Simioni, Michel; Gonzales, Frederic; Guillotreau, Patrice; Grel, Laurent Le

doi:10.1111/j.1744-7976.2012.01257.x

Cited by 32 publications

(33 citation statements)

References 41 publications

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“…Much of the earlier work in price linkages between different levels in the value chains has been drawn from the agricultural economics literature (see, e.g., Brorsen et al, 1985;Gardner, 1975;Goodwin & Harper, 2000;Heien, 1980;Holloway, 1991;Kinnucan & Forker, 1987;Lyon & Thompson, 1993;Ward, 1982;Wohlgenant, 1985). Recently, a number of studies have examined price transmission for different fish species (see, e.g., Asche et al, 2007Asche et al, , 2014Floros, 2006;Guillotreau, 2004;Guillotreau et al, 2005;Jaffry, 2005;Jiménez-Toribio & García-del-Hoyo, 2006;Simioni et al, 2013). However, almost all of these studies have been conducted in developed countries focusing on commercial fish species.…”

Section: Introductionmentioning

confidence: 98%

Value Chain Dynamics and the Small-Scale Sector: A Summary of Findings and Policy Recommendations for Fisheries and Aquaculture Trade

Bjørndal

Child

Lem

et al. 2015

Aquaculture Economics & Management

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& This article centers on an FAO project that focused on price transmission in fishery and aquaculture value chains, and the research conducted via case studies in 14 developed and developing countries. A brief overview of the project with the methodology of analysis and findings for each country is summarized in this work. In addition, general policy recommendations that emerged as key themes across all value chains are discussed. Across all case studies, it was found that relative to other players in the value chain, small-scale fishers and fish farmers are receiving the smallest economic benefits for their products. Processors and retail markets were found to be receiving more of the distributional benefits of the value chain owing to their stronger bargaining power. With this finding, policy recommendations aim to safeguard the interests of small-scale fishers and fish farmers by improving their prices and margins while allowing the resource to achieve long-term sustainability from an economic, social and biological perspective.

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Section: Introductionmentioning

confidence: 98%

Value Chain Dynamics and the Small-Scale Sector: A Summary of Findings and Policy Recommendations for Fisheries and Aquaculture Trade

Bjørndal

Child

Lem

et al. 2015

Aquaculture Economics & Management

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show abstract

“…Economics theory held that, any external shock to the demand or supply side of a market, whatever the number of stages between producers and consumers, should not result in a different speed (or length) of adjustment to the long-run equilibrium according to the sign of the variation. Any significant difference would reveal a case of market failure as long as the output price is expected to respond symmetrically to variations of input prices (Simioni et al, 2013).…”

Section: Discussion Of the Long And Short Run Results And Its Implicamentioning

confidence: 99%

Commercial fish price shock behaviour in Akwa Ibom State, Southern Nigeria

Sunday¹,

Edet²,

Inimfon³

2016

AFRREV STECH: Int J. Sci and Technol

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Producer – consumer price behaviour in the long run depends on several factors. This study tested for the long run price adjustment behaviour between the producer price of captured fish and its urban or retailed price in the Southern region of Nigeria. Monthly price of low quality fresh fish; high quality fresh fish; low quality dry fish; high quality dry fish; imported fish; cocokle, periwinkle, dry Bonga fish; and dried cray fish were used in the study. The study covers the period from January 2004 to December 2014. The study used the Engle –Granger (1987) and Enders - Siklos (2001) methodologies to verify the symmetric and asymmetric price relationship between the source (fisherman price) and its corresponding urban price alone the food chain. The result confirmed significant short and long run market integration between the source and its corresponding urban price. However, the source price equilibrium in the long run followed asymmetric adjustment with respect to urban prices in cockle and periwinkle; whereas symmetric adjustments were obtained from prices of low quality fresh fish; high quality fresh fish; low quality dry fish; high quality dry fish; imported fish; dry Bonga fish; and dried cray fish. The symmetric price adjustment was not instantaneous, while the asymmetric price relationship showed persistent positive shock in the long run. It is suggested that, fish market/industry in the study area has problems that need intervention in order to remove price distortion in the long run. Issues such contract fishing, large intermediaries in the marketing chain, unnecessary market power and poor processing among others were mentioned. Hence, these issues need to be addressed adequately in order to achieve high efficiency in the local fishing industry in the region.Keywords: Market integration, asymmetric price transmission, symmetric transmission, fishery, Nigeria

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“…Though many of these studies report asymmetric and imperfect pass through of prices, the evidence is mixed and varies widely across commodities and geographic locations (Aguiar & Santana, 2002;Meyer & von Cramon-Taubadel, 2004;Sapkota et al, 2012;Bakucs et al, 2014;Bukenya & Ssebisubi, 2014). In the fisheries sector, notable studies include Guillen and Fran quesa (2008), Matsui et al (2011), Nakajima et al (2011), Simioni et al (2013), Nielsen et al (2007), Asche et al (2012), Floros (2007). However, most of these studies focused on large-scale market chains in developed countries.…”

Section: Introductionmentioning

confidence: 97%

“…The widening gap between farm, wholesale and retail prices in various agricultural markets has motivated many empirical analyses of price transmission (Meyer & Cramon-Taubadel, 2004;Pozo et al 2013;Simioni et al, 2013). The concern in many of the studies is whether prices adjust symmetrically or asymmetrically.…”

Section: Introductionmentioning

confidence: 98%

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

Bukenya

Ssebisubi²

2015

Journal of African Business

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The issue of price linkage in the catfish supply chain in Uganda is important because catfish has become an important traded species with exports to regional markets rising even faster than production, yet limited research has been undertaken to understand the linkages and the non-linearity in the price transmission mechanism. This paper explores the issue using monthly price data from January 2006 to August 2013, and applies threshold autoregressive approaches to test for the existence of a long-run relationship and price asymmetry. The results show that prices in the catfish value chain are tied together by a long-run relationship. It is also revealed that ex-vessel and wholesale price adjustments to retail price changes are symmetric while ex-vessel price adjustments to wholesale price changes are shown to be asymmetric. The direction of causal relationships was observed from the retail to the wholesale and ex-vessel markets, indicating that retailers are the price leaders in the Uganda catfish supply chain.

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Detecting Asymmetric Price Transmission with Consistent Threshold along the Fish Supply Chain

Cited by 32 publications

References 41 publications

Value Chain Dynamics and the Small-Scale Sector: A Summary of Findings and Policy Recommendations for Fisheries and Aquaculture Trade

Value Chain Dynamics and the Small-Scale Sector: A Summary of Findings and Policy Recommendations for Fisheries and Aquaculture Trade

Commercial fish price shock behaviour in Akwa Ibom State, Southern Nigeria

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

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