Using monthly prices data of five categories of vegetables selected from 11 markets, this paper investigates the co-price movement of vegetables at wholesale level from 2002 to 2006. Timmer’s model (1986) is applied in this study to test the degree of market connection. The empirical results show that most of regional markets studied are well connected in long run with Deum Kor, the central vegetable market whereas the number of markets which are connected in short run decrease. Few markets are poorly interrelated with the central market, and tend to be separated. However, the degree of market connection varies depending on commodities and locations where markets are located. Road, communication, and market information network are induced as vital factors, which produce market segmentation in this country. Moreover, certain markets are also influenced by exogenous factors, including harvest, draught, water shortage, and flood on their price formation.
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