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Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea

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  • Ahn, Byeong-Il
  • Lee, Hyunok

Abstract

This paper extends the estimation of price relationships in wood processing and empirical assessment of asymmetric price transmission by incorporating time lags in both explanatory and dependent variables. Each of the models developed and estimated in this article reveals the existence of asymmetric price transmission between factory and wholesale prices of fiberboard in Korea. Estimation results indicate that wholesalers earn additional profits by exploiting price fluctuations in the markets. The empirical findings in this study suggest the potential for lower wholesale prices of fiberboard with more competition in wholesale marketing.

Suggested Citation

  • Ahn, Byeong-Il & Lee, Hyunok, 2013. "Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea," Journal of Forest Economics, Elsevier, vol. 19(1), pages 1-14.
    • Handle: RePEc:eee:foreco:v:19:y:2013:i:1:p:1-14
    DOI: 10.1016/j.jfe.2012.06.008
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    Cited by:

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    2. Farajzadeh, Z. & Amiraslany, A., 2018. "Examination of the international market power for Iranian pistachios," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277345, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Price relationships; Asymmetric transmission; Fiberboard; Causality; Co-integration; Marketing chain;
    All these keywords.

    JEL classification:

    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products

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