Vertical Price Transmission: A Case of Integrated Malaysian Broiler Industry

Umar A. Muazu; Zainalabidin Mohamed

Vertical Price Transmission: A Case of Integrated Malaysian Broiler Industry

Umar A. Muazu *

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Zainalabidin Mohamed

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Vertical Price Transmission: A Case of Integrated Malaysian Broiler Industry

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Abstract

This paper examines how price changes are transmitted between farm-wholesale-retail market levels of broiler meat in Peninsular Malaysia. Data used in the analysis include average monthly farm, wholesale and retail price index for standard broiler meat for period 2000M01 through 2011M12. Johansen’s and Juselius co-integration technique was used to examine whether long run relationship between the price indices exists. Asymmetry error correction model was used to analyze price transmission behavior along the vertical supply chain. The results indicate there is long run equilibrium relationship between the market price levels. The results of price transmission elasticity show retail responds to wholesale 0.943% and retail to farm 0.0284%. The sign of the value of ECT is negative (-0.659) and significant at 5% significance level implying an ECT towards equilibrium is expected. The formal test of asymmetry proved symmetric price transmission retail-wholesale and asymmetry behavior retail to farm.

References

14 Cites in Article

Reference Format

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Umar Muazu, Zainalabidin Mohamed. 2014. "Vertical Price Transmission: A Case of Integrated Malaysian Broiler Industry". Global Journal of Science Frontier Research, Global Journal of Science Frontier Research - D: Agriculture & Veterinary GJSFR-D Volume 14 (GJSFR Volume 14 Issue D5).

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GJSFR Volume 14 Issue D5

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Journal Specifications

Crossref Journal DOI 10.17406/GJSFR

Print ISSN 0975-5896

e-ISSN 2249-4626

Keywords

asymmetry co-integration error correction model price transmission vertical integration

Classification

GJSFR-D Classification FOR Code: 070199

079999

Submission ReceivedMay 16, 2014
Peer Review Double Blind
Handling Editor
Accepted June 6, 2014
Published June 17, 2014

Version of record

v1.2

Issue date

July 26, 2014

Language

English

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Article Matrices

Total Score: 149

Country: Nigeria

Subject: Global Journal of Science Frontier Research

Authors: Umar A. Muazu, Zainalabidin Mohamed, Mad Nasir S., Ismail, A. (PhD/Dr. count: 0)

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