Abstract

DE LA CRUZ ALMANZA, SADAN; VARGAS PEREZ, ANDRÉS  and  MARTINEZ MARTINEZ, MARÍA LUCIA. Spatial integration of dairy markets: effects of regulated prices. rev. econ. Caribe [online]. 2022, n.29, pp.76-98.  Epub Sep 28, 2022. ISSN 2011-2106.  https://doi.org/10.14482/ecoca.29.658.421.

The main objective of this research is to determine the existence of spatial integration between the raw milk markets of the department of Atlántico and the departments of Antioquia and Cundinamarca. To this end, the price paid to the raw milk producer by the dairy processing industry was examined. Tis is a regulated price and is made up of elements that are common to the producing regions, and others that reflect aspects specific to each of them, such as differences in quality and regional market dynamics. Econometric techniques of linear cointegration and cointegration with thresholds were applied. Te results show the existence of a long-run relationship for total prices paid to the raw milk producer, which is dominated by regulatory aspects that determine a common base price between regions. Tere is no evidence of a long-term relationship for the part of the price associated with regional market dynamics. Tese results do not allow us to state categorically that regional raw milk markets are spatially integrated.

Keywords : Single-price law; regulatory policy; cointegration.

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