Reza Sedaghat, Faculty Member (Ph.D.), Economics and Marketing Division, Iranian Pistachio Research Institute, Iran.
Abstract
Pistachio is the most important agricultural crop cultivated extensively in Iran's tropics/semi-tropics. The country earns sizable income from Pistachio export to many countries. This paper aims to study the spatial price integration of Iran's pistachio prices with USA prices as a major rival country of Iran in world market. Time series data on domestic and export prices collected for the time periods 1982-2003 and 1991-2004 respectively. Co-integration analysis and Dickey-Fuller test were employed for the aim of current study. The price series used for comparison were Iran's producer and export prices, Iran and USA export prices and Iran and USA producer prices. Results reveal that none of the price series are co-integrated. This shows that the LOP can not be hold, and so the prices are not moving together in long run.
Key words:
market integration; co-integration; spatial integration; stationary; integration degree