Abstract
This study analyzed spatial price transmission of potato markets in Ecuador. Price transmission is an essential indicator to understand a market system. To evaluate asymmetric price transmission between two spatial markets, the Nonlinear Autoregressive Distributed Lag (NARDL) model was applied in the study. The four major provinces such as Quito, Latacunga, Riobamba and San Gabriel of potato production are selected and spatial market data are collected from the System of Agriculture Pubic Information in Ecuador. The study found that there exist asymmetric price transmissions between Riobamba and Latacunga, and Riobamba and San Gabriel for long and short run. Quito and Latacunga, and Riobamba and Quito showed asymmetric price transmission for long run, but not for short run. The positive and negative effects of the long-run relationship between Riobamba and Quito and between Riobamba and San Gabriel are bigger than between other spatial markets. It is the first study to provide empirical information about regional potato markets.
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