The Journal of Fisheries Business Administration (수산경영론집)

The Korean Society of Fisheries Business Administration (한국수산경영학회)
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Empirical Evidence on the Integration of Major Fishery Product Import Markets in South Korea: Focus on Frozen Pollock, Frozen Long Arm Octopus, and Frozen Hairtail

국내 주요 수산물 수입시장의 통합정도 : 냉동명태, 냉동낙지, 냉동갈치 시장을 중심으로

  • Lim, Eun-Son (Department of Economics, University of South Carolina) ;
  • Kim, Ki-Soo (Division of International Commerce, Pukyong National University)
  • 임은선 (사우스캐롤라이나 대학교 경제학과) ;
  • 김기수 (부경대학교 국제통상학부)
  • Received : 2015.10.26
  • Accepted : 2015.12.02
  • Published : 2015.12.31
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Abstract

This study examines whether or not the South Korean major fishery product import markets; Frozen Pollock, Frozen Long Arm Octopus, and Frozen Hairtail are integrated. We are utilizing the Multivariate and Bivariate Johansen Co-integration test to see if the law of one price(LOP) holds in each market or not. The empirical results show that even though import prices from different countries affect each other in each South Korean major fishery product import market, there is no evidence of LOP in any fishery product import market, which means that none of the markets are integrated. Based on these results, we could expect that the three major fishery product import markets show monopolistic competition among import countries. we would also see whether or not any country plays the role of a price leader in any of the markets. Based on weak exogeneity test results, we might expect that the United States and Malaysia are price leaders in the South Korean Frozen Pollock Import Market and Frozen Long Arm Octopus Import Market, respectively; however, we need to study more on this in the future.

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References

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