Price Transmission in Thai Aquaculture Product Markets: An Analysis Along Value Chain and Across Species

Abstract

We have examined the presence of price transmission asymmetry along the value chain, and the price transmission across four main aquaculture species in Thai fish market using monthly data from January 2001 to October 2010. This is an attempt to contribute to the literature on horizontal and vertical price transmission in the seafood markets including the price transmission asymmetry in the developing countries. We did not find any evidence of asymmetric price transmission in walking catfish (except in long-run), vannamei shrimp and tilapia; however, it is evident in Thai Asian sea bass market; wholesalers exercising some market power. In general, price of one species is not found to significantly affect price of the other species at the same level of value chain.

Keywords:

• price transmission across species
• price transmission asymmetry
• price transmission models
• thai fish market
• vertical price transmission

ACKNOWLEDGMENTS

The University of Arkansas at Pine Bluff provided staff time for some of the authors. The Canada Excellence Chairs Program supported Kehar Singh’s time. The authors are thankful to the anonymous reviewers for their comments/suggestions.