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Spatial Integration of the European Olive Oil Market

Authors

J.A. Roldán Casas, R. Dios Palomares y J. Martínez Paz

Issue

109-4 (458-475)

Topic

Agricultural economics

Keywords

Olive oil, cointegration, market integration, price series.

Abstract

The aim of this paper is to study the spatial integration of the European olive oil market, from the prices of the three main producers and traders in the world (Spain, Italy and Greece) between 1961 and 2007. The analysis is carried out using multivariate cointegration techniques, identifying the short-run and the long-run relationships. The empirical results show that the three olive oil markets are highly integrated, with a complete price transmission in the long run. They also suggest that Italy is the leader market being Spain the main producer.

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