Price infficiency of citrus in lattakia market
2009
Al-Oliwe, A.A.
Lattakia and Tartus governorates are the two main production areas of citrus in Syria (95%). This is attributed to the fact that these two governorate age located at the west of the country across the Mediterranean Sea. In additions, farmers of these two governorates have acquired good experience of planting citrus since long time. However, the citrus production in these two governorates provides job opportunities for 35000 farm family. This paper investigates the price efficiency of citrus in Lattakia market focusing on wholesale and retail prices of citrus over 18 months (January 2007 -August 2008). The relationship between retail price of citrus as dependent variable and wholesale price of citrus as independent variable were estimated via OLS technique. The estimated regression line between retail price and wholesale price of citrus was graphed for each citrus product. At the same time the scatter diagram of retai1 and wholesale price of each citrus product was plotted. As the regression line represents the price efficiency (on average) between retail; and wholesale price, the points lie above this regression line will be considered as measurement of price inefficiency. Consequently, the points above the regression line can be utilized to derive policy implication in order to improve price inefficiency. The government of Syria can take some action in this regards such as strengthening the marketing cooperatives of citrus. This action of the GOS will enhance the marketing faculties such as transport, packaging, sorting, grading and storage.
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