Integración vertical y transmisión de precios en el mercado de la merluza

Abstract

Total Allowable catches (TACs) for the main fish species in European Union (EU) waters have been reduced for the last decade, thereby reducing fleet revenues. During the same period prices increased slightly, hardly offsetting income reductions. However, price changes depend on the market structure and price formation mechanism, which highly determines the degree of vertical integration along the value chain. This paper analyses the price transmission between Spanish fishing markets along the value chain of the main fish species landed in the Basque Country by analyzing the evolution of prices at first-hand sale, wholesale and retail markets. The methodology is based on unit root tests, Johansen�s cointegration tests and the formulation of vector error correction models (VECM) to study Granger causality among prices. Finally, we discuss some potential impacts of alternative commercial innovation strategies on value chain.