Negative Media Sentiment about the Pig Epidemic and Pork Price Fluctuations: A Study on Spatial Spillover Effect and Mechanism

Abstract

As the media have continued to pay increasing attention to pig epidemic events, some local pig epidemic events may have a large degree of negative impact on the pork market and the whole pig industry chain, leading to pork price fluctuations. Strengthening pig epidemic control, monitoring media reporting sentiment, and stabilizing pork price fluctuations are important measures to improve the economy and people’s livelihood. This paper sets out to identify the relationship between the negative media sentiment about the pig epidemic and the market risk of pork prices within a setting with pig epidemic risk. Based on the provincial panel data of China from January 2011 to December 2022, this paper uses the spatial panel Durbin model to investigate the impact of negative media sentiment about the pig epidemic on pork price fluctuations from the perspective of local and spillover effects, and further discusses the mechanism of consumer sentiment. The empirical results show that: (1) The negative media sentiment about the pig epidemic significantly exacerbates pork price fluctuations, and there is a single threshold effect, which is weakened after crossing the threshold value. (2) The negative media sentiment about the pig epidemic has a significant positive spillover effect on pork price fluctuations, showing the characteristics of “being a neighbor”. The spatial spillover effect shows a significant spatial attenuation feature and an inverted U-shaped change with the inflection point at 1400 km. (3) The effect is related to the heterogeneity of media reputation. The local aggravation effect of local media’s negative sentiment on pork price fluctuations is greater than that of central media and information network platforms. In terms of the spatial spillover effect, the negative sentiment of the information network platforms has the strongest effect on the aggravation of pork price fluctuations in neighboring regions. (4) The mechanism study finds that the negative media sentiment about the pig epidemic positively affects pork price fluctuations through the path of “consumer sentiment”. Therefore, this research recommends that the government department should strengthen the supervision of media sentiment about the pig epidemic and reasonably guide consumer sentiment to stabilize the pork market.