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| 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 |
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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.
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.
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Received: 02 June 2011
Accepted:
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| Fund: 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. |
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Corresponding Authors:
Correspondence XU Shi-wei, Professor, Ph D, Tel: +86-10-82109902, E-mail: xushiwei@mail.caas.net.cn
E-mail: xushiwei@mail.caas.net.cn
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| About author: XU Shi-wei, Professor, Ph D, Tel: +86-10-82109902, E-mail: xushiwei@mail.caas.net.cn |
Cite this article:
XU Shi-wei, DONG Xiao-xia, LI Zhe-min, LI Gan-qiong.
2011.
Vertical Price Transmission in the China’s Layer Industry Chain: an Application of FDL Approach . Journal of Integrative Agriculture, 10(11): 1812-1823.
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