Regional Price Difference and Inter-Regional Price Fluctuation of Agricultural Products

  • Tianlong Jiang
Keywords: Agricultural Products, Regional Spread, Price Fluctuation law, Granger Causality Test, Price Space Transmission

Abstract

Price stability has a bearing on the well-being of people and is one of the main goals of China's macroeconomic
policy. As an important leading indicator of changes in the overall price level, excessive changes in the price of
agricultural products will have an important impact on the overall price level, which will adversely affect
people's production and life and affect the stable operation of the national economy. The difficulty of buying and
selling agricultural products in China is becoming increasingly prominent, which seriously affects farmers'
income and the stability of agricultural economic order. As an indispensable component of the price mechanism,
agricultural product price transmission is of great significance for the timely discovery of the difficulty of
buying and selling in the process of commodity transactions. Based on the above background, the research
content of this article is the study of agricultural product regional price differences and regional price
fluctuations. This article uses wheat as an example, with the help of modern economics theories and research
methods, starting from the supply and demand relationship of the wheat market in China and external shock
factors, to establish an analytical framework for the fluctuation and impact of wheat prices in China, by
analyzing the causes and mechanisms of wheat price fluctuations, The mechanism, mode and degree of
influence of the main influencing factors are clarified, and the transmission effect of wheat price fluctuations in
China and the supply response behavior of wheat producers are analyzed on this basis. Finally, experimental
simulations show that the correlation coefficient between Beijing and Shijiazhuang, Hefei and Nanjing is the
largest, which is 0.991, and the correlation coefficient between Zhengzhou and Guangzhou is the smallest,
which is 0.957. It can be seen that the distance between the markets has an effect on the correlation degree of
wheat market prices. Larger.

Published
2020-02-01