Fish Price Pass-Through Along the Spatial Markets in Sri Lanka

Abstract

Fisheries industry plays a crucial role in addressing food and nutrition security challenges in developing countries. This study examines the dynamics of price pass-through along the spatial markets in Sri Lanka. Findings reveal that Colombo and Kandy markets are the main driver of price pass-through due to their strategic locations and advanced infrastructure. We further identify that one standard deviation positive price shock in Colombo and Kandy markets has an immediate significant impact on other regional markets. Policies related to improving transportation and cold storage facilities can help to reduce reliance on central markets for nationwide distribution.