Analysis on Price Fluctuation of Horticulture Products Based on DWT and SVAR

Interaction between world import price and Chinese export price can reflect the openness of Chinese market. Firstly, the paper uses multiresolution analysis to analyze price signal and decomposes them into approximations and details, and then eliminates noise in original signal through reconstructing. Finally, the paper analyzes interaction between world import price and Chinese export price of horticulture products during the year 1961 to 2007 by using discrete wavelet transform, SVAR model, impulse response and variance decomposition. The results show that world import price of horticulture products is higher than that of Chinese export price, so horticulture products of China have price advantage temporarily; world import price is shocked much by Chinese export price and its influence on Chinese export price is gradually increasing; there is a convergence trend between the two types of prices which will lead to the gradual loss of the price advantage of horticulture products of China; price convergence reduces fluctuation of Chinese export price, but enhances the difficulty of regulation.