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The Evolution of the Pricing Mechanism in the Polish Vegetable Markets: An Empirical Test
Author(s) -
Florkowski Wojciech J.,
Elnagheeb Abdelmoneim H.
Publication year - 1993
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349707
Subject(s) - mechanism (biology) , test (biology) , business , economics , financial economics , biology , botany , philosophy , epistemology
Changes in price interaction between farmers' markets and retail stores were traced for Poland's vegetable markets. The vegetable market has been functioning within a competitive framework since the late 1950's. Using monthly price observations for cabbage, onions, potatoes, and carrots, the Granger causality test was applied to test the lead/lag relationship between the two types of outlets. Unidirectional causality test results indicate that a gradual price interaction occurred among the vegetable prices starting in the period of 1974 to 1979 and increased noticeably during the 1980's. This slowly unfolding process was a contributing factor in the forcing of economic liberalization.