Integración espacial del mercado de la papa en el Valle del Cauca: dos aproximaciones diferentes, una misma conclusión

This paper analyses the potato market spatial integration for Valle del Cauca. We use weekly potato prices for the period 2003:52 – 2005:42. Traditional cointegration analysis has been applied as well as an innovative approach: dynamic co-movement. This new approach implies measures of time series cohesion (suggested by Croux, Forni and Reichlin (2001)). Results indicate spatial market integration for Valle del Cauca. The time series traditional methods also show that changes in Cali’s market prices precede changes in market prices of Armenia, Bogotá, Manizales and Pasto. This result supports the evidence that Cali acts as a central market. Furthermore, dynamic correlations are stronger in the long run than in relatively short periods of less than two and a half weeks.