Evidence of market price leadership in the Spanish red seabream value chain -: Implications for fisheries management

This paper analyses the price transmission between fishing markets along the value chain of the red seabream (Pagellus bogaraveo) from the Straits of Gibraltar. It examines how changes in margins along the value chain have an influence on the welfare of fishermen. To do that, prices at first-hand sale, wholesale and retail markets are used. The methodology is based on unit root tests, cointegration tests and the formulation of vector error correction models (VECM) to study causality among prices. Finally, we reach some conclusions about the impact of the management measures implemented by the Government regarding this fishery on the red seabream value chain. (c) 2006 Elsevier B.V. All rights reserved.