The behavior of hake prices in Chile: is the world market leading?

The behavior of hake prices in Chile: is the world market leading?

Blog Article

In this study we analyzed price determination throughout the Chilean hake market chain.To analyze the relationship between different prices participating in this chain, a VECM model was successfully estimated.One cointegration vector was identified.Tests for weak exogenous here variables, causality, and significance of different variables were performed, and a parsimonious version of the model was selected.

The knowall.blog results obtained in this paper outline a price determination process that, in the end, is governed by world market conditions.Moreover, the diverse links in the hake market chain seem to be well integrated, which implies that there is little room for domestic price determination.