Cross-country analysis of efficiency and productivity in the biotech industry: an application?of the generalized metafrontier Malmquist productivity index

摘要

The paper provides insights into the price transmission of dairy sector in Slovakia and examined the nature of price adjustments and market efficiency along the vertical chain. The results were based on monthly prices covering the time period 2004–2012. The farm gate prices of raw cow milk Q class and I. class were distinguished and the comparison was made also between the prices of semi-fat milk and durable semi-fat milk. The methodological approach called the Vector Error Correction model (VECM) was applied in the paper due to the fact that the Johansen co-integration test revealed that the time series were co-integrated, meaning that the long run relationship existed between them. The obtained results were in line with the recent empirical findings that have shown that the market power on the demand side, the imperfect market structure existence and also the fact that milk is a highly perishable commodity might be the explanations for the revealed asymmetric price adjustments.