GLOBAL TO DOMESTIC PRICE TRANSMISSION BETWEEN THE SEGMENTED CEREALS MARKETS: A STUDY OF AFGHAN RICE MARKETS

This paper examines cointegration and the difference in the extent of price transmission, and speed of adjustment between global and domestic prices of high and low quality rice. Unit root tests, cointegration tests and error correction models are employed in the analysis. While there are no comparable studies in the literature, the findings of this study indicate that the dynamics of price transmission may be different between high and low quality rice markets. That is, the extent of price transmission appears to be larger for the global prices of low quality rice whereas the speed of adjustment to the long-run equilibrium may be faster for domestic prices of high quality rice. Moreover, a shock in the global prices of low quality rice may have a long-lasting effect on domestic prices of low quality rice as compared to their high quality counterparts affecting domestic prices of high quality rice.


Issue Date:
2015-10
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 2147-8988 (Other)
E-ISSN: 2149-3766 (Other)
PURL Identifier:
http://purl.umn.edu/229191
Published in:
International Journal of Food and Agricultural Economics, Volume 03, Number 4
Page range:
27-42
Total Pages:
16
Series Statement:
Vol 3
No 4




 Record created 2017-04-01, last modified 2017-08-28

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