How well is the Russian wheat market functioning? A comparison with the corn market in the USA

Given Russia’s leading position in the world wheat trade, how well its grain markets function becomes very important question to evaluate the state of future global food security. We use a threshold vector error correction model to explicitly account for the influence of trade costs on price relationships in the grain markets of Russia and the USA. In addition, we study impact of market characteristics on regional wheat market integration. Empirical evaluation shows that distance between markets, interregional trade flows, export orientation, export tax and export ban all have a significant impact on the magnitude of wheat market integration.


Subject(s):
Issue Date:
Aug 28 2017
Publication Type:
Conference Paper/ Presentation
Language:
English
Total Pages:
13




 Record created 2017-08-04, last modified 2017-08-29

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