LATEST PUBLICATIONS
PB2020-06
Legislating Fiscal Responsibility
CN2020-01
NAVIGATING THE HEADWINDS TO SUSTAIN ECONOMIC GROWTH 2019 ECONOMIC PERFORMANCE AND 2020 ECONOMIC PROSPECTS
PB2020-05
A RISK ASSESSMENT ON THE COVID-19 SITUATION IN THE PHILIPPINES: IMPLICATIONS ON THE ECQ POLICY
PB2020-04
FIGHTING COVID-19: CONCEPTUAL CONSIDERATIONS FOR SHORT-RUN POLICY RESPONSE
Publication Detail
DP 2014-36: A Spatial Integration Analysis of the Regional Fertilizer Markets in the Philippines

Fertilizer, which is an important production input, holds a significant share in total cost of production for some crops. Based on the available fertilizer price data, it can be observed that price levels vary greatly across regions. To help determine whether or not this variability is alarmingly high, a spatial market integration analysis was done. Based on the Granger causality test, it is found that the price in one region either causes or affects prices in another region. The cointegration test suggests that regional markets are integrated. Long-run relationships are also shown to be statistically significant. The finding that regional fertilizer markets in the Philippines are integrated is consistent with the absence of market power in the fertilizer industry. The number of market players in the industry makes it highly unlikely for one or few dealers of fertilizer to control the market price of fertilizer.

Philippine Institute for Development Studies
Authors Keywords
Galang, Ivory Myka R.; Philippines; fertilizer; spatial market integration; Granger causality; Johansen cointegration test;
Download PDF Number of Downloads
Published in 2014 and available in the PIDS Library or can be downloaded as full text Downloaded 1,657 times since August 06, 2014