Pricing Efficiency in Major Cattle Auction Centres in the Philippines
The problem of low productivity is the major constraint to the development of the Philippine livestock sector. Contribution from the industry particularly cattle production is considered below potential despite conditions favoring cattle raising in the Philippines. Apart from the technical inno...
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| Format: | Thesis |
| Language: | English English |
| Published: |
1989
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8022/1/FEP_1989_5_A.pdf |
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| Summary: | The problem of low productivity is the major constraint to
the development of the Philippine livestock sector.
Contribution from the industry particularly cattle production
is considered below potential despite conditions favoring
cattle raising in the Philippines.
Apart from the technical innovations to encourage cattle
raising, an improvement in the marketing system is needed to
sustain production. The establishment of livestock auction
markets to minimize the defects of the traditional marketing system is believed to be the most feasible short-run
modification to effect an efficient marketing of cattle .
This study evaluates the pricing efficiency in major
cattle auction centres in the Philippines. The univariate
residual cross-correlation approach by Haugh (1972 , 1976) and
Pierce (1977), and the Sims' (1972) distributed-lag regress ion
were used to ascertain Whether the auction centres are
integrated in terms of price formation. This was done through
the assessment of the nature of causality between prices in the
various cattle auctions within and among regions. Time series
data an prices consisting of 84 monthly observations were
utilized for the purpose.
Results showed an inter-dependence among markets, thus,
rejecting the null hypothesis of no market integration. The
study concludes that government policies geared towards an
effective dissemination and monitoring of market information,
establishment of more auction markets will enhance the output
of the livestock sector. |
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