The Lack of Market Integration in the Chinese Beer and Wine Markets: Evidence from Stationarity Test

Lau, Chi Keung, Lin, Zhibin, Boansi, David and Ma, Jie (2016) The Lack of Market Integration in the Chinese Beer and Wine Markets: Evidence from Stationarity Test. In: Brewing, Beer and Pubs: A Global Perspective,. Palgrave Macmillan, Basingstoke, pp. 123-144. ISBN 9781137466174

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Abstract

Following the economic reform in China and subsequent economic growth, the country has witnessed interesting shifts in dimensions of supply in various subsectors. This has in one way or another, stimulated growth in national and per capita disposal incomes among other economic indicators. In particular, there has been rapid growth in both beer and wine consumption in the country. This chapter aims to examine the nature of the beer and wine industry. Specifically we investigate price related issues and the degree of integration of the Chinese beer and wine markets and the nature of price convergence/divergence across major markets. The study utilises a 10-day interval data of beer and wine retail prices from January 2005 to December 2012 provided by the National Development and Reform Commission of the People’s Republic of China. A series of unit root tests are performed to assess the price convergence. The empirical findings suggest that Chinese beer and wine markets are not well integrated, and there is no evidence of significant arbitrage activities in the wine and beer markets. Implications for policy development were discussed.

Item Type:	Book Section
Subjects:	L100 Economics N200 Management studies T100 Chinese studies
Department:	Faculties > Business and Law > Newcastle Business School
Related URLs:	Publisher
Depositing User:	Dr Jie Ma
Date Deposited:	14 Dec 2015 10:03
Last Modified:	19 Nov 2019 09:49
URI:	http://nrl.northumbria.ac.uk/id/eprint/24990

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