Asymmetric price transmission in perishable crops value chain: A NARDL approach

IF 2.1 3区经济学 Q2 AGRICULTURAL ECONOMICS & POLICY

Agribusiness Pub Date : 2024-01-29 DOI:10.1002/agr.21904

Purushottam Sharma, Dinesh Chand Meena, Md. Ejaz Anwer

{"title":"Asymmetric price transmission in perishable crops value chain: A NARDL approach","authors":"Purushottam Sharma, Dinesh Chand Meena, Md. Ejaz Anwer","doi":"10.1002/agr.21904","DOIUrl":null,"url":null,"abstract":"Policymakers and economists envisage effective price transmission across markets or stakeholders in supply chains as a vital contributor to market efficiency. The paper explores the vertical price transmission in the perishables supply chain in India using weekly data on farm, wholesale and retail prices collected from main production and consumption markets. We estimate the asymmetries in price transmission using the nonlinear autoregressive distributed lags model and found the asymmetry in both magnitude and speed in the case of wholesale–retail chain of Onion and Potato, asymmetry in magnitude in wholesale–retail chain of Tomato, and asymmetry in speed in farm–wholesale chain of Potato. The results of asymmetric coefficient, long-run elasticity of price transmission, speed of adjustment and implied half-life of disequilibrium indicated that farm–wholesale chain is more efficient than wholesale–retail chain. Further, market chains of Onion and Tomato are more efficient than Potato chains. The magnitude of the adjustment was found to be larger for the long-run positive shock in wholesale–retail market chain of Onion, Potato and Tomato, and it concluded that retailers enjoy an advantage over wholesalers as well as farmers. We draw interesting policy considerations for the perishables sector [EconLit Citations: Q11, Q13, C32].","PeriodicalId":55544,"journal":{"name":"Agribusiness","volume":"7 1","pages":""},"PeriodicalIF":2.1000,"publicationDate":"2024-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Agribusiness","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1002/agr.21904","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}

引用次数: 0

Abstract

Policymakers and economists envisage effective price transmission across markets or stakeholders in supply chains as a vital contributor to market efficiency. The paper explores the vertical price transmission in the perishables supply chain in India using weekly data on farm, wholesale and retail prices collected from main production and consumption markets. We estimate the asymmetries in price transmission using the nonlinear autoregressive distributed lags model and found the asymmetry in both magnitude and speed in the case of wholesale–retail chain of Onion and Potato, asymmetry in magnitude in wholesale–retail chain of Tomato, and asymmetry in speed in farm–wholesale chain of Potato. The results of asymmetric coefficient, long-run elasticity of price transmission, speed of adjustment and implied half-life of disequilibrium indicated that farm–wholesale chain is more efficient than wholesale–retail chain. Further, market chains of Onion and Tomato are more efficient than Potato chains. The magnitude of the adjustment was found to be larger for the long-run positive shock in wholesale–retail market chain of Onion, Potato and Tomato, and it concluded that retailers enjoy an advantage over wholesalers as well as farmers. We draw interesting policy considerations for the perishables sector [EconLit Citations: Q11, Q13, C32].

查看原文本刊更多论文

易腐作物价值链中的非对称价格传递：NARDL 方法

政策制定者和经济学家认为，供应链中各市场或利益相关者之间有效的价格传导是提高市场效率的重要因素。本文利用从主要生产和消费市场收集的每周农场、批发和零售价格数据，探讨了印度易腐食品供应链中的纵向价格传导。我们使用非线性自回归分布滞后模型估计了价格传导的不对称性，发现洋葱和土豆的批发-零售链在幅度和速度上都存在不对称性，番茄的批发-零售链在幅度上存在不对称性，土豆的农场-批发链在速度上存在不对称性。不对称系数、价格传导的长期弹性、调整速度和隐含的不平衡半衰期的结果表明，农场-批发链比批发-零售链更有效率。此外，洋葱和番茄的市场链比马铃薯链更有效率。在洋葱、马铃薯和番茄的批发-零售市场链中，长期正向冲击的调整幅度较大，因此得出结论，零售商比批发商和农户更有优势。我们为易腐食品行业提出了有趣的政策考虑[经济学引文：Q11, Q13, C32]。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Agribusiness 农林科学-食品科技

CiteScore

5.50

自引率

6.20%

发文量

审稿时长

6 months

期刊介绍： Agribusiness: An International Journal publishes research that improves our understanding of how food systems work, how they are evolving, and how public and/or private actions affect the performance of the global agro-industrial complex. The journal focuses on the application of economic analysis to the organization and performance of firms and markets in industrial food systems. Subject matter areas include supply and demand analysis, industrial organization analysis, price and trade analysis, marketing, finance, and public policy analysis. International, cross-country comparative, and within-country studies are welcome. To facilitate research the journal’s Forum section, on an intermittent basis, offers commentary and reports on business policy issues.