An Empirical Analysis of Market Integration and Efficiency for U.S. Fresh Tomato Markets
By: Padilla-Bernal, Luz E.; McFadden, Dawn Thilmany; Loureiro, Maria L.
Padilla-Bernal, Luz E.; McFadden, Dawn Thilmany; Loureiro, Maria L., An Empirical Analysis of Market Integration and Efficiency for U.S. Fresh Tomato Markets, Journal of Agricultural and Resource Economics, Volume 28, Issue 3, December 2003, Pages 435-450
Fresh tomato trade between the United States and Mexico grew significantly during the 1990s. Moreover, major structural changes in U.S. produce marketing channels increase the complexity of conducting analyses to delineate the impact of liberalized trade. Following the work of Barrett, Li, and Bailey, this study implements a mixed distribution to examine spatial-price relationships between major shipping points and terminal markets for Mexican imported, and Florida and California tomatoes. Although markets are often efficiently integrated, results suggest strategic pricing and product shipments may exist and vary among terminal markets in Los Angeles, Boston, and Chicago.