A Study on the Spatial Segmentation and Market Integration of Agricultural Products Wholesale Markets

Key Points

• The study aims to analyze the price correlations between agricultural wholesale markets to determine market integration levels.
• Utilized daily trading data of onions, radishes, cabbages, apples, and tomatoes from 10 central wholesale markets over the last 5 years.
• Performed ADF and Fisher unit root tests for time series stationarity.
• Estimated the half-life of price shocks using GIRF and analyzed the relationship with distance variables through OLS and WLS regression models.
• All items showed that shocks from other markets persist longer than self-market shocks, indicating structural price correlation.
• Analysis confirmed that physical distance between wholesale markets impacts the speed of price shock adjustment.
• The impact of price changes from the Garak wholesale market on radishes, cabbages, and apples increases depending on whether Garak is included in the analysis.