Cointegration analysis of wild and farmed sea bream and sea bass prices in Turkey

Abstract

Market integration is an indicator of the extent to which different products are interrelated, and the presence of market integration between products suggests that they are substitutes. The objective of this study was to determine the market interaction between wild and farmed products of two fish species, namely sea bream and sea bass. For this purpose, the relationship between the producer price time series of cultured sea bream, wild sea bream, cultured sea bass, and wild sea bass in the period of 2009-2017 was tested using the cointegration analysis technique. It was found that the wild sea bream and sea bass prices and the farmed sea bream and sea bass prices were cointegrated in the long term, followed each other's patterns, and were affected by the prices in the previous period. It was concluded that farmed sea bream and sea bass and wild sea bream and sea bass were substitutes in terms of market prices.