Exploration of influencing factors of price of herbal based on VAR model.
- Author:
Nuo WANG
;
Shu-Zhen LIU
;
Guang YANG
- Publication Type:Journal Article
- MeSH:
Agriculture;
economics;
Commerce;
Costs and Cost Analysis;
Drugs, Chinese Herbal;
economics;
Humans;
Models, Statistical;
Plants, Medicinal;
growth & development;
Regression Analysis
- From:
China Journal of Chinese Materia Medica
2014;39(20):4070-4073
- CountryChina
- Language:Chinese
-
Abstract:
Based on vector auto-regression (VAR) model, this paper takes advantage of Granger causality test, variance decomposition and impulse response analysis techniques to carry out a comprehensive study of the factors influencing the price of Chinese herbal, including herbal cultivation costs, acreage, natural disasters, the residents' needs and inflation. The study found that there is Granger causality relationship between inflation and herbal prices, cultivation costs and herbal prices. And in the total variance analysis of Chinese herbal and medicine price index, the largest contribution to it is from its own fluctuations, followed by the cultivation costs and inflation.
