Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach

doi:10.1016/S1671-2927(11)60181-8

Journal of Integrative Agriculture ›› 2011, Vol. 10 ›› Issue (11): 1812-1823.DOI: 10.1016/S1671-2927(11)60181-8

• 论文 • 上一篇

Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach

XU Shi-wei, DONG Xiao-xia, LI Zhe-min, LI Gan-qiong

1.Key Laboratory of Digital Agricultural Early-Warning Technology, Ministry of Agriculture/Agricultural Information Institute, Chinese Academy of Agricultural Sciences

收稿日期:2011-06-02 出版日期:2011-11-01 发布日期:2011-11-07
通讯作者: Correspondence XU Shi-wei, Professor, Ph D, Tel: +86-10-82109902, E-mail: xushiwei@mail.caas.net.cn
作者简介:XU Shi-wei, Professor, Ph D, Tel: +86-10-82109902, E-mail: xushiwei@mail.caas.net.cn
基金资助:
This work is supported by the the National Key Technologies R&D Program of China (2009BADA9B01). The authors remain responsible for remaining errors and omissions.

Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach

XU Shi-wei, DONG Xiao-xia, LI Zhe-min, LI Gan-qiong

1.Key Laboratory of Digital Agricultural Early-Warning Technology, Ministry of Agriculture/Agricultural Information Institute, Chinese Academy of Agricultural Sciences

Received:2011-06-02 Online:2011-11-01 Published:2011-11-07
Contact: Correspondence XU Shi-wei, Professor, Ph D, Tel: +86-10-82109902, E-mail: xushiwei@mail.caas.net.cn
About author:XU Shi-wei, Professor, Ph D, Tel: +86-10-82109902, E-mail: xushiwei@mail.caas.net.cn
Supported by:
This work is supported by the the National Key Technologies R&D Program of China (2009BADA9B01). The authors remain responsible for remaining errors and omissions.

摘要/Abstract

摘要： This paper examines the vertical price relationship between upstream and downstream products in China’s layer industry chain by estimating elasticity coefficients of the price transmission. We use cointegration tests, error correction models and finite distributed lag models to analyze vertical price shifts between corn, layer feed, egg-laying chicken and egg prices. With monthly data from 1994 to 2010, our results show that various prices in China’s layer industry chain are well integrated. In addition, our results indicate that both long-run and short-run price relationships between upstream and downstream products in layer industry chain exist and the long-run equilibrium, to a certain extent, may eliminate the short-run dynamics price deviation. We also found that the influence of corn and feed prices on egg prices is still more remarkable than egg-laying chicken prices. Our findings imply that governments should pay more attention to corn and layer feed prices in order to stabilize egg prices under the conditions of market integration.

关键词: finite distributed lag model, vertical price transmission, layer industry chain, China

Abstract: This paper examines the vertical price relationship between upstream and downstream products in China’s layer industry chain by estimating elasticity coefficients of the price transmission. We use cointegration tests, error correction models and finite distributed lag models to analyze vertical price shifts between corn, layer feed, egg-laying chicken and egg prices. With monthly data from 1994 to 2010, our results show that various prices in China’s layer industry chain are well integrated. In addition, our results indicate that both long-run and short-run price relationships between upstream and downstream products in layer industry chain exist and the long-run equilibrium, to a certain extent, may eliminate the short-run dynamics price deviation. We also found that the influence of corn and feed prices on egg prices is still more remarkable than egg-laying chicken prices. Our findings imply that governments should pay more attention to corn and layer feed prices in order to stabilize egg prices under the conditions of market integration.

Key words: finite distributed lag model, vertical price transmission, layer industry chain, China

XU Shi-wei, DONG Xiao-xia, LI Zhe-min, LI Gan-qiong. Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach [J]. Journal of Integrative Agriculture, 2011, 10(11): 1812-1823.

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Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach

Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach

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