The relationship between trade and price volatility in the Mexican and US maize markets

The supply of maize in the Mexican market depends to a large extent from the US imports which represent a large share of the domestic consumption. Furthermore imports exhibit a seasonal pattern, and peaks are often found close to low levels of domestic production and stocks. The present research suggests that there is a link between imports and prices volatility. Below a threshold value, imports and volatility are not related, but beyond the threshold it is volatility the variable driving imports. From the results one can argue that imports have served as a measure to stabilize prices when the domestic supply is scarce.

Issue Date:
Feb 23 2012
Publication Type:
Conference Paper/ Presentation
Record Identifier:
PURL Identifier:
Total Pages:
JEL Codes:
Q11; Q17

 Record created 2017-04-01, last modified 2018-01-22

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