Market Power, Vertical Linkages and Government Policy

Problems of agricultural marketing have long bveen of concern to policy-makers, especially in determining the relative roles to be played by the private and public sectors in improving market performance. This book is a comprehensive evaluation of the fish trade in Peninsular Malaysia, a business fraught with risks and uncertainties. It draws upon various economic theories and statistical tools to establish the market characteristics of the trade of a highly heterogeneous commodity in a multi-market distribution system. Intriguing features of the fish trade are identified, some of which are at divergence with the conventional wisdom. In the study, attention is first focused on the industrial structure framework, with special emphasis on, and modifications to, concepts that are of importance to fish marketing. Then, the structural features of the fish trade and its market conduct are established and government and co-operative intervention schemes evaluated. The final chapter synthesizes the findings across the board to gauge the overall competitiveness of the fish industry and makes policy suggestions for improving market performance.

The book is a comprehensive evaluation of the fish trade in Peninsular Malaysia. Drawing upon various economic theories and statistical tools, intriguing features of the fish trade are identified and evaluated, and these, at times, do not conform to the conventional wisdom in market intervention.