Price transmission of extra-virgin olive oil between the major producers of EU

Abstract

The objective of this paper is to assess the degree of market integration in the principal EU EVOO markets Spain, Italy and Greece. To access that, monthly olive oil price data are utilized using econometrics methods. The empirical results suggest that the markets are partly integrated and this is especially the case for the prices of Spain and Greece which seem to be more integrated. The findings imply that the three principal spatial olive oil markets in the EU cannot be thought of as one integrated market since APT may occur.