부산대학교 도서관

The main objective of this study was to explore the relevance of trade liberalization and the market integration conditions between domestic and international livestock markets. By applying the theory of cointegration, we adopted Unit Roots Test and Cointegration Method to analyze the long-run cointegrating relationships between the livestock markets of Taiwan and the world. In order to increase the reliability of the empirical results, error- correction model (ECM) was adopted as the cointegration method. The empirical analyses revealed that although all of the livestock markets showed short-run relationships between the domestic and the international markets, and the international prices led the domestic prices, the long-run cointegrating relationship existed only between the domestic and the international beef markets. Since the beef market is the only livestock market exists no non-tariff trade barriers in Taiwan, the results imply that trade liberalization could help improving the long-run cointegrating relationship between domestic and international livestock markets. Also, it has positive influences upon the status of international market integration.