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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