Price Transmission Mechanism in the Iranian Rice Market

Subject Areas : International Journal of Agricultural Science and Research

F. Jezghani ¹ , R. Moghaddasi ² , S. Yazdani ³ , A. Mohamadinejad ⁴

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Received: 2012-01-08 Accepted : 2012-03-03 Published : 2011-12-01

Keywords: Rice market, Asymmetry, Vertical supply chain, Causality,

Abstract :

In this article, we estimate the vertical price transmission through the Iranian rice marketing chain by usingmonthly data from March 2000 to February, 2009 and error correction model (ECM).The causality testresults indicate that changes in the producer price clearly led changes in wholesale and retail prices. InProducer-Retail and Wholesale-Retail models, price transmission is asymmetric but in Producer-Wholesalemodel the estimated model supports symmetric price transmission for rice in Islamic Republic of Iran.