Spatial Effects Of The Price Of Pork: An Empirical Analysis Of Various Regions In China

In this article we looked at factors that affect the price of pork at 28 regions across China. We all know that the traditional models of the price of pork only consider the internal conditions of the regions that affect the price of pork, so we have added space effects to the models to measure the impact of space to the price of pork, this is the just contents that spatial econometrics studies. we use the basic spatial econometric models to set up the regression models of the price of pork, then we use the data collected to do space-related significance test, the results of the test supports the conclusion that we should add space effects to the regression models of the price of pork. we set up two different spatial models: the spatial lag autoregressive model and spatial error autoregressive model, and we also set up two kinds of spatial weight matrices, one is the simple binary contiguity matrix, and the other is more difficult matrix. At last we use the data to do regression, the results show that the effects of space on the price of pork is about from 0.84 to 0.92, that means the pork price will rise about 0.84 to 0.92 units if the weight price of pork of the region's neighbors rise 1 unit. Then we choose some spatial units from the 28 regions, and study the fluctuation of these units. We also compare the goodness of the two kinds of spatial weight matrices, and we can not make a conclusion of the goodness of the two kinds of weight matrices.