Translated Titles

A Study on Spatial Price System for Paddy in Southern Vietnam



Key Words

Spatial price system ; Paddy price ; Granger causality test ; Dynamic model



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English Abstract

In Viet Nam, paddy production has always been an important part of socio-economic structure. However, the self-sufficiency trend of main traditional export markets of Vietnam and the strong growth in rice export of some Asian countries such as Cambodia and India created competitive pressure on Vietnam. Under this circumstance, rice export companies are recently focusing on domestic market, especially, deficit areas. Besides, focusing on domestic market also is a new orientation of the government to achieve sustainable development for the paddy rice sector. The frequency change of inter-region trades raises the question of how the present market system operates. Thus, how the spatial price relationship interact among regions become an important issue. Therefore the major objective of this study is to investigate spatial price relationships among regions at the Southern Vietnam, which includes the largest paddy production region – Mekong River Delta and the consumption region - South East. For this purpose, this study applied co-integration test and Granger causality test which are conducted within the framework of a vector auto-regression model. An additional insight regarding spatial price relationships is pointed out by using impulse response analysis. The results show that agents would prefer to trade and arbitrage at short distance production areas; production areas have a significant influence on prices in consumption region; Tien Giang plays an important role as a leader of price formation; and prices in other surplus areas are quite sensitive to price fluctuation in Tien Giang than deficit areas.

Topic Category 農業暨自然資源學院 > 應用經濟學系所
社會科學 > 經濟學
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