Market Integration of Fish in Europe |
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| Authors: | Max Nielsen Jos Smit Jordi Guillen |
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| Affiliation: | Max Nielsen is associate professor at the Institute of Food and Resource Economics, the Faculty of Life Sciences at the University of Copenhagen, Rolighedsvej 25, DK‐1958 Frederiksberg C, Denmark. E‐mail: for correspondence. Jos Smit is a Fisheries Economist at LEI, P.O. Box 29703, 2502 LS, the Hague, the Netherlands. E‐mail: . Jordi Guillen is Fisheries Economist from the University of Barcelona, currently at the European Commission, Joint Research Center (JRC), Maritime Affairs Unit, Ispra, Italy. E‐mail: . |
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| Abstract: | This paper examines market integration between fish species in Europe, taking international market integration into account. Based on Juselius (2006) , market integration is found both on the fresh and frozen markets. The Law of One Price is in force on the fresh market within the segments of flatfish and pelagic fish. Assuming transitivity, a loose form of market integration is identified between 13 fresh and seven frozen fish species, and the relative prices are found fairly stable. The policy implication is that catch limitation measures implemented through the Common Fisheries Policy have limited and conditional effects on prices, because of the large size of the market and varying market integration. Therefore, many fishermen are not ‘compensated’ by price increases as a result of catch limitation measures. |
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| Keywords: | Cointegration common trends driving forces Law of One Price market integration price formation weak exogeneity C32 Q22 |
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