Spatial Price Relationships in the Olive Oil Market of the Mediterranean

The study of spatial price relationships helps to explain market performance and the degree of market integration. This paper provides an empirical analysis of the long- and short-run price linkages in the olive oil market of the Mediterranean using Time Series techniques. The empirical results suggest the existence of a stable long-run relationships among prices in Spain, Italy, and Greece. They also suggest that the major producer and exporter (Spain) is the price leader while Greece and Italy are the followers.