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Integration of United States, Thailand and Philippine Canned Tuna Markets

In this study we investigate price integration in the United States, Thailand and Philippine canned tuna markets by employing a dynamic model of spatial price differentials to determine how rapidly and completely price information is transmitted from one market to another over time. When the United States is assumed to be the central canned tuna market, we find that the Thai canned tuna market operates independently of price conditions in the United States. On the other hand, the Philippine market is well integrated with the United States market in the sense that a change in the United States price is quickly and effectively communicated to the Philippine market. These results are shown to have significant implications with regard to measures the United States might take to control the flow of canned tuna imports from Southeast Asia.