Effects of transaction costs on the spatial integration of the internal market for frozen whole chicken / Efeitos de custos de transação sobre a integração espacial de mercados regionais de carne de frango no Brasil

AUTOR(ES)
DATA DE PUBLICAÇÃO

2008

RESUMO

Non-negligible transaction costs restrict the transmission of price shock between markets spatially separated, reducing the possibilities that the markets may become economically integrated. The aim of this work was to analyze the effects of transaction costs on the spatial integration of the internal market for frozen whole chicken, from January 1998 to June 2007. Further objectives were verifying whether the regional markets are spatially integrated, studying the spatial and temporal dynamics of price transmission between the markets, investigating the presence of asymmetry and discontinuities in the process of price transmission, besides investigating differences among the transaction costs of the analyzed markets. The applied methodology was based on econometric models formulated from the Threshold Cointegration Analysis, such as Threshold Autoregressive Models (TAR) and Threshold Vector Error Correction Model (TVEC), bivariate, with two (TVEC2) and three (TVEC3) regimes. Daily price series of the markets in São Paulo (SP), Descalvado (SP), Porto Alegre (RS), Coast of Santa Catarina (SC), West of Paraná (PR), Ponta Grossa (PR), Belo Horizonte (MG), Goiânia (GO), Fortaleza (CE), Recife (PE) and Belém (PA) were used, for these markets presented a major commercialization potential and available data, in wholesale level, for frozen whole chicken meat. The estimates for the costs which must be incurred in order to transmit price shocks between the markets indicate the presence of significant barriers to the price transmission between the markets, existing probably due to the transaction costs. Such costs come apparently due to freight costs, since they were most of time associated to the distance between the central market and each of the other markets. The exceptions occurred specially with the markets of the coast of Santa Catarina, Porto Alegre and specially west of Paraná and Ponta Grossa. About the short-term dynamics, the obtained results showed that, in overview, the observations were concentrated on the regimes where cointegration between the price in the central market and each of the other markets is not expected. In most of the cases, the estimated adjustment coefficients ratified São Paulos position as price setter. It could also be noted that the prices are not very sensitive to eventual deviations of the balance relations in a long term. The half-life estimates showed that a relatively long period is necessary to eliminate price shocks. The estimated threshold parameters and the calculated half-lives showed that the price transmission process is asymmetric. It could be noted that price increases occurred in São Paulo can be more easily transmitted to further markets than price reductions. High transaction costs deriving probably from freight associated costs and the high perishability of the chicken meat can explain at least partially this obtained result.

ASSUNTO(S)

threshold integração espacial co-integration economia co-integração carne de frango frozen whole chicken transaction costs custos de transação spatial integration threshold

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