We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Analysis of Asymmetric Price Transmission of Selected Vegetables in Peninsular Malaysia.
- Authors
Zainalabidin, M.; Iliyasu, A.
- Abstract
The wholesalers are practicing strategic pricing behavior in Malaysian vegetables markets to the extents that increase in the farm products prices were not fully transmitted to farmers as decrease, resulting to marketing inefficiency and loss of farmer's income. Thus, the study aims to examine the existence of asymmetric price transmission (APT) in the vegetables supply chain of Peninsular Malaysia. Monthly data on farms, retails, and wholesale prices of two selected vegetables (Mustard and Spinach) for the period of ten years were sourced from federal agricultural marketing authority (FAMA). The data were analysis using Houck model to investigate for APT. The findings shows that relationship along the supply chain of selected vegetables were bidirectional. However, the results indicates that wholesale price reacts faster on price increase than price decrease to the changes made by farmers. On the other hand, farm prices response faster on price decrease than price increase as wholesaler change their prices. Besides, a long run estimation of price transmission for both vegetables revealed that wholesaler increases their price more than changes made by either retailers or farmers. Thus, the findings suggested that wholesalers exert market power in the vegetable industry.
- Subjects
MALAYA; VEGETABLE marketing; WHOLESALE prices
- Publication
Malaysian Journal of Mathematical Sciences, 2017, Vol 11, p87
- ISSN
1823-8343
- Publication type
Article