Market linkages between the US and Japan: an application to the fisheries industry

Recent trends in globalization of Pacific Basin commodity markets raises im portant questions concerning the nature of market integration and price lin kages. This paper examines this issue by testing for price linkages between the United States and Japan for two species whose exports from the U.S. to Japan have risen considerably over the past decade. Empirical results indi cate segmentation of price linkages for sablefish but probable price linkag es for some thornyhead markets. Findings suggest that markets for these spe cies may be less sensitive to price changes in Japan than would be expected based on commodity flows. (C) 1994 Elsevier Science B.V. All rights reserv ed. JEL classification: D0; F0; Q0.