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    Spatial Integration Analysis of the Regional Urea Fertilizer Markets in the Philippines

    Galang, Ivory Myka R. | June 2018
    Abstract
    Fertilizer, an important production input, accounts for a significant share of the total production cost of some crops. Data on fertilizer’s retail price show that the price levels considerably vary across regions. Given the archipelagic nature of the Philippines, one possible cause of such disparity is the poor condition of the domestic transport infrastructure. Huge price differences could also be due to the presence of market power in the fertilizer industry. However, no study has yet analyzed the spatial market integration of the fertilizer market at the subnational level. To help determine whether or not the variability across regional domestic markets could be attributed to inefficiencies due to market segmentation, this study conducted conventional tests of spatial market integration. Those tests were implemented using two different approaches—pairwise and simultaneous. Under the pairwise approach, each region was paired with another region. All possible pairs were included in the analysis. Under the simultaneous approach, cointegration test was applied to previously identified as “anomalous” regions (i.e., regions whose fertilizer prices were greater than the national average) vis-a-vis other regions in their corresponding island groups. Results of both pairwise and simultaneous cointegration tests suggested the rejection of the null hypothesis of no cointegration. The absence of segmentation and the sheer number of players lessened the likelihood of localized monopolies as being the source of regional price disparities.
    Citation
    Galang, Ivory Myka R.. 2018. Spatial Integration Analysis of the Regional Urea Fertilizer Markets in the Philippines. © Philippine Institute for Development Studies. http://hdl.handle.net/11540/11297.
    Keywords
    Agricultural education
    Agricultural information
    Agricultural statistics
    Agriculture
    Sustainable agriculture
    Commercial agriculture
    Fertilizer Industry
    Diseases
    Agricultural education
    Sustainable development
    Environmental management
    Safety Education
    Water Quality
    Animal Diseases
    Chemical Fertilizer
    Agricultural products
    Industrial Production
    Industrial Policy
    Industrial Equipment
    Industrial Facilities
    Agricultural diversification
    Agricultural resource
    Farm produce
    Rice farming
    Soil science
    Agricultural information network
    Agricultural landscape management
    Farm management
    Agricultural innovations
    Technological innovations
    Agricultural processing industry
    Alternative agriculture
    Organic dairy farming
    Organic floriculture
    Organic viticulture
    Produce trade
    Crop
    Organic gardening
    Export
    Import
    International competition
    Commercial policy
    International trade
    Farm population
    Agricultural population
    Food
    Food Supply
    Farm supply industry
    Produce trade
    Fertilizers and Manures
    Organic Fertilizers
    Artificial Fertilizers
    Crop Insurance
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    Citable URI
    http://hdl.handle.net/11540/11297
    Metadata
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    Thumbnail
    pidspjd2017-1_fertilizer.pdf (2.137Mb)
    Author
    Galang, Ivory Myka R.
    Theme
    Agriculture
    Industry
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise