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Competitiveness of local food: an empirical analysis of the tomato market dynamics

in International Food and Agribusiness Management Review
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Xin Fang Associate Professor, Department of Financial Economics and Information Systems, Hawaii Pacific University, 900 Fort Street Mall, Suite 600, Honolulu, HI 96813, USA.

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Hui Huang Assistant Professor, Department of Financial Economics and Information Systems, Hawaii Pacific University, 900 Fort Street Mall, Suite 600, Honolulu, HI 96813, USA.

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PingSun Leung Professor, Department of Natural Resources and Environmental Management, University of Hawaii at Manoa, 3050 Maile Way, Gilmore 111, Honolulu, HI 96822, USA.

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Local food has become the foci of food self-sufficiency and sustainable development. This work explores the dynamic interactions between local and imported food in Hawaii, which is a typical small, open economy and an ideal market for a local food system study. Retail scanner data of three major grocery chain stores are used to construct a time series of prices and quantities for local and imported grape and cherry tomatoes in one year (52 weeks). Vector Autoregressive model and impulse response functions are used to investigate the correlations and Granger causalities. Empirical results provide implications for the competitive status of local suppliers and the dynamics of the local food market.

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