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TESTING FOR INTEGRATION IN EUROPEAN COMMUNITY AGRICULTURAL PRODUCT MARKETS
Author(s) -
Zanias G. P.
Publication year - 1993
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1993.tb00284.x
Subject(s) - agriculture , product (mathematics) , business , agribusiness , market integration , agricultural economics , agricultural science , economics , environmental science , geography , mathematics , microeconomics , geometry , archaeology
The degree of spatial market integration in European Community agricultural product markets is investigated. The methodology is based on co‐integration analysis. A two‐step testing procedure is applied to test the existence of the ‘Law of One Price’ which should be in force if these markets are truly integrated. The results show that market integration has not been achieved in a number of cases even when MCAs are subtracted from the price series used.