| Fruit production and consumption have increased considerably in the past few decades in Taiwan. Market prices of fruits fluctuate in response to seasonality, changes in production costs, imports and exports, and demand. Some factors are more influential to fruit price changes. This research utilizes the Vector Autoregressive Model to analyze effects of exogenous shocks to market prices of fruits. Dynamic models were developed for bananas, grapes, guavas, papayas, pineapples, and watermelons. For the market of bananas, prices of pesticides have delayed positive effects; an increase of watermelon prices raises the prices of bananas; prices of banana exports explain some variations of domestic banana prices. For the market of grapes, income, interest rates,... |
