Price transmission asymmetry of selected fishes in Bangladesh: An econometric and value chain analysis

Learning the extent of price volatility is critical to ensure the producer and consumer's economic welfare. Hence, we have envisioned assessing the price transmission relationship over time among the farmgate, wholesale, and retail markets for the four major aquaculture products, namely Rui, Ca...

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Published inAquaculture economics & management Vol. 27; no. 4; pp. 638 - 665
Main Authors Acharjee, Debasish Chandra, Gosh, Kamal, Alam, G. M. Monirul, Haque, A. B. M Mahfuzul, Sayem, Sheikh Mohammad, Hossain, Mohammad Ismail
Format Journal Article
LanguageEnglish
Published Abingdon Taylor & Francis 02.10.2023
Taylor & Francis Ltd
Subjects
Aquaculture
Aquaculture products
Asymmetry
Butter
Causality test
Coefficient of variation
Error correction
Fish
fish market integration
Polyculture (aquaculture)
price transmission
Prices
statistical modeling
Tilapia
value chain
Value chains
Bangladesh
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Summary:Learning the extent of price volatility is critical to ensure the producer and consumer's economic welfare. Hence, we have envisioned assessing the price transmission relationship over time among the farmgate, wholesale, and retail markets for the four major aquaculture products, namely Rui, Catla, Tilapia and Pangas in Bangladesh. The Granger causality test examined the causal relationships among the farmgate, wholesale and retail fish prices. The Houck/Ward and error correction approach was also applied to study their price transmission pattern. Results indicate that the retail price leads the wholesale and farmgate price. In most cases, the coefficient of variation decreases as the fish handover from the farmgate to retail levels. Out of 15 pairs of farmgate, wholesale, and retail price-series analyzed, 14 pairs are co-integrated (p < 0.01). Current results also suggest that the price transmission pattern is symmetric in the short run but could be a mixture of symmetric and asymmetric in the long run. This asymmetric price behavior indicates that changes in retail prices do not get reflected fully at both farmgate and wholesale prices, and the transmitted prices may vary according to the retail prices based on their rising or falling pattern.
ISSN:1365-7305
1551-8663
DOI:10.1080/13657305.2022.2163720