Exploring the Impact of Wheat Prices and Annual Income on Pig Carcass Prices in European Countries: A Spatial Panel Regression Analysis

In this study, we investigated the spatial and temporal dynamics of pork carcass prices across European Union Member States, focusing on the influence of wheat prices and population income levels between 2014 and 2023. Our analysis revealed that both input costs (reflected by wheat price fluctuations) and income-driven demand factors exert significant and spatially correlated effects on pork carcass prices. The results demonstrate the existence of spatial interdependencies among neighboring countries, indicating that price changes in one region may propagate through the broader European market. By integrating spatial econometric techniques within a panel data framework, this research provides empirical evidence of the interconnected nature of EU agricultural markets, advancing the existing literature by demonstrating how input markets and consumer income dynamics jointly shape price behavior within an integrated regional economy. Our findings contribute to a deeper understanding of price transmission mechanisms in the livestock sector and offer valuable insights for policymakers seeking to enhance market efficiency and resilience within the Common Agricultural Policy context.