Dynamic relationships among weekly retail prices for milk from three regions of Kyrgyzstan are studied in an error correction framework. Observational data over the period January 1995-May 1999 are used in the analysis. Results show that prices from the oblasts of Issyk-Kul and Djalal-Abad form one long-run cointegration relationship, with prices from Issyk-Kul exhibiting the property of weak exogeneity. Prices from the Osh oblast are not part of this relationship. These results are related to the levels of state-run milk marketing facilities versus private-run milk marketing facilities and surplus versus deficit milk production in each region.
