A SURVAY OF SPATIAL PRICE TRANSMISSION OF IRAN SAFFRON

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MOHAMMADREZAZADEH N.; DANESHVAR M.; SHAHNOOSHI N.; DOURANDISH A.; NIKOUKAR A.

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Paper Information

Journal: JOURNAL OF AGRICULTURAL ECONOMICS RESEARCH Year:2013 | Volume:5 | Issue:2 (18) Page(s): 187-205

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Title

A SURVAY OF SPATIAL PRICE TRANSMISSION OF IRAN SAFFRON

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Keywords

SPATIAL PRICE TRANSMISSIONQ2

IRAN SAFFRON MARKETQ2

THRESHOLD ERROR CORRECTION MODELQ2

Abstract

Research on asymmetric price transmission is the topics that have been discussed in term of agricultural economy seriously. Analysis of price spatial relationships are generally looking to show convergence between local markets and reviewing the performance of these markets. Price spatial transmission is interpreted to assess the degree of convergence of markets and reduce functional impairment of markets and effort to reduce transaction costs. Because of the importance of saffron as one of the major items of non oil exports, aggregation of producers of this crop in Khorasan province, and distribution of consumer of this product in other provinces of Iran, the main objective of this study is to investigate the spatial transmission of saffron price in provinces of country. In the present study, by using the monthly retail price of saffron in the years 1385-1390 and by using THRESHOLD ERROR CORRECTION MODEL, price spatial transmission patterns between Khorasan province and other provinces in the country are estimated. studied-provinces, there is positive price asymmetry. price transmission coefficients show that in the short term, price reducing at the retail level are transmitted faster to other markets than price increasing, and in long term, any deviation from the long-term equilibrium relation is moderated and markets are converge. Efforts to create favorable conditions for buying the product from the manufacturer, and highlighting the role of stock markets and futures markets of saffron and the creation of producers' organizations or cooperatives of saffron production in the EU to increase their bargaining power and finally lowering the role of brokers in the market seems to be necessary.

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References

THRESHOLD PRICE TRANSMISSION MODEL IN IRANIAN CHICKEN MARKET

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APA: Copy

MOHAMMADREZAZADEH, N., DANESHVAR, M., SHAHNOOSHI, N., DOURANDISH, A., & NIKOUKAR, A.. (2013). A SURVAY OF SPATIAL PRICE TRANSMISSION OF IRAN SAFFRON. JOURNAL OF AGRICULTURAL ECONOMICS RESEARCH, 5(2 (18)), 187-205. SID. https://sid.ir/paper/158770/en

Vancouver: Copy

MOHAMMADREZAZADEH N., DANESHVAR M., SHAHNOOSHI N., DOURANDISH A., NIKOUKAR A.. A SURVAY OF SPATIAL PRICE TRANSMISSION OF IRAN SAFFRON. JOURNAL OF AGRICULTURAL ECONOMICS RESEARCH[Internet]. 2013;5(2 (18)):187-205. Available from: https://sid.ir/paper/158770/en

IEEE: Copy

N. MOHAMMADREZAZADEH, M. DANESHVAR, N. SHAHNOOSHI, A. DOURANDISH, and A. NIKOUKAR, “A SURVAY OF SPATIAL PRICE TRANSMISSION OF IRAN SAFFRON,” JOURNAL OF AGRICULTURAL ECONOMICS RESEARCH, vol. 5, no. 2 (18), pp. 187–205, 2013, [Online]. Available: https://sid.ir/paper/158770/en

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