Volume 1, Issue 2 (1-2024)
Ame 2024, 1(2): 101-110 |
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Azadbar F, Eshraghi F, Joolaie R, Keramatzadeh A. (2024). Investigating Asymmetric Price Transmission and Monopoly in Iran’s Red Meat Import Market. Ame. 1(2), 101-110. doi:10.61186/ame.1.2.101
URL: http://ame.sanru.ac.ir/article-1-66-en.html
URL: http://ame.sanru.ac.ir/article-1-66-en.html
Gorgan University of Agricultural Sciences & Natural Resources
Abstract: (223 Views)
Extended Abstract
Introduction and Objective: Price fluctuations in the market of agricultural products, price transfer and then the market margin have been one of the constant challenges of the agricultural sector. How price shocks are transmitted in the commodity supply chain affects the welfare of producers, marketing agents, and consumers. How prices affect different markets, as well as the symmetrical or asymmetrical effects of price changes can be considered important issues in the analysis of business policies. The existence of symmetry in the market means the complete transfer of price changes at one level of the market to other levels, and asymmetry occurs when the price increase (decrease) is transferred faster than the price decrease (increase). The purpose of this study was to determine the asymmetry of prices in the Iranian red meat market and also to measure the monopoly in this market as one of the possible factors of price asymmetry.
Material and Methods: In this study, using monthly data during the years 2013-2018, the price symmetry in the import market of red meat in Iran was investigated using Johansen-Juselius technique and estimation of error correction model. Also, using the annual data of 2001-2018, the degree of monopoly in this market was evaluated using Herfindahl-Hirschman index.
Results: The results showed that there is at most a long-term relationship between the two variables of imported and domestic prices of red meat. Also, the results of the Granger causality test indicate the existence of a causal relationship between these two variables, and the estimation of the price transfer pattern from the imported price to the domestic price shows the symmetry of the price transfer, both in the short term and in the long term, so that the effect The rise and fall of imported prices lasts up to three months in the domestic market. Also, the results of Herfindahl- Hirschman index during the years 2010-2017 were higher than 1800 units, which indicates the state of high concentration in the red meat import market.
Conclusion: According to the results, because the price transfer was symmetrical in the short and long term, the government's performance in the field of red meat imports and supporting the domestic consumer has not been very successful. Also, the examination of the monopoly in this market shows the high concentration and dominance of the two countries Brazil and the United Arab Emirates in the Iranian red meat import market. Therefore, it is suggested that with the increase in the number of countries that are parties to the transaction, the exclusive status will become weaker so that in the event of political problems and international tensions, the amount of welfare damage to the people will be reduced.
Introduction and Objective: Price fluctuations in the market of agricultural products, price transfer and then the market margin have been one of the constant challenges of the agricultural sector. How price shocks are transmitted in the commodity supply chain affects the welfare of producers, marketing agents, and consumers. How prices affect different markets, as well as the symmetrical or asymmetrical effects of price changes can be considered important issues in the analysis of business policies. The existence of symmetry in the market means the complete transfer of price changes at one level of the market to other levels, and asymmetry occurs when the price increase (decrease) is transferred faster than the price decrease (increase). The purpose of this study was to determine the asymmetry of prices in the Iranian red meat market and also to measure the monopoly in this market as one of the possible factors of price asymmetry.
Material and Methods: In this study, using monthly data during the years 2013-2018, the price symmetry in the import market of red meat in Iran was investigated using Johansen-Juselius technique and estimation of error correction model. Also, using the annual data of 2001-2018, the degree of monopoly in this market was evaluated using Herfindahl-Hirschman index.
Results: The results showed that there is at most a long-term relationship between the two variables of imported and domestic prices of red meat. Also, the results of the Granger causality test indicate the existence of a causal relationship between these two variables, and the estimation of the price transfer pattern from the imported price to the domestic price shows the symmetry of the price transfer, both in the short term and in the long term, so that the effect The rise and fall of imported prices lasts up to three months in the domestic market. Also, the results of Herfindahl- Hirschman index during the years 2010-2017 were higher than 1800 units, which indicates the state of high concentration in the red meat import market.
Conclusion: According to the results, because the price transfer was symmetrical in the short and long term, the government's performance in the field of red meat imports and supporting the domestic consumer has not been very successful. Also, the examination of the monopoly in this market shows the high concentration and dominance of the two countries Brazil and the United Arab Emirates in the Iranian red meat import market. Therefore, it is suggested that with the increase in the number of countries that are parties to the transaction, the exclusive status will become weaker so that in the event of political problems and international tensions, the amount of welfare damage to the people will be reduced.
Type of Study: Research |
Subject:
General
Received: 2024/02/5 | Accepted: 2024/02/26 | Published: 2024/03/10
Received: 2024/02/5 | Accepted: 2024/02/26 | Published: 2024/03/10
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