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Abstract
Market integration of Finland toward
EU has important implication to domestic agricultural
policy. Our aim is to estimate the characteristics of the
Finnish pork markets in relation to Germany. Our
analysis use symmetric and asymmetric threshold
error correction models. Pork prices are found
cointegrated, and cointegration relationship of two
counties is found asymmetric. A large positive shock
in Germany is transmitted faster to Finland than a
large negative one. It implies that a combination of cooperative
processors and public quoted companies as
in Finland, can smooth out some of the short term
price fluctuations observed abroad.