Analyzing Price Interactions between Wild Caught Fish and Farmed Fish on the Korean Seafood Market

Abstract This study is aimed to estimate price interactions between wild caught fish and farmed fish on the Korean seafood market, using multivariate cointegration analysis. Major commercially important four wild caught fish (chub mackerel, hairtail, yellow croaker and spanish mackerel) and two farmed fish(oliver flounder and black rockfish) are selected as analytical target fish species. Between 2000 and 2013, monthly production and price data are used in this study.The results of cointegration test showed that there would be a long-term equilibrium relationship among 4 wild caught fish and 2 farmed fish. However, the results of exclusion test indicated that farmed fish might not contribute significantly to the long-run relationship, suggesting that farmed fish might be only a weak substitute for wild caught fish, but no significant interaction could be found. Key words : Price interactions, Johansen cointegration test, Exclusion test, Farmed fish, Wild caught fish Corresponding author : 051-629-5954, delaware310@pknu.ac.kr +%&,2015-./0101 (R2015013)234+5, 678 9/.