THE INFLUENCES OF EXPORT CONTROLS ON WHEAT MARKETS IN SERBIA DURING THE FOOD CRISIS 2007-2008

During the food crisis in 2007/2008 the government of Serbia restricted the export of wheat to ensure that wheat supply on the domestic market is sufficient thereby dampening the increase in consumer food prices. This study investigates the effects of the export restriction on the integration, equilibrium and stability of its domestic wheat market. Within the framework of a Markov-switching error correction model, we utilize weekly wheat grower prices of Serbia and world market prices and compare the state of the wheat market prevailing in the time period before the crisis to when the exports controls are effective. Our results suggest that although the degree of market integration and thus the long-run price elasticity do not change during the crisis, the market equilibrium was disrupted and the stability was reduced during the crisis. Also, we find that the price dampening effect of the export restrictions prevailed only in a short time period and that the Serbian wheat grower prices even increased beyond the world market afterwards.


Issue Date:
2009-12
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
isbn 978-86-82121-76-3 (Other)
PURL Identifier:
http://purl.umn.edu/57344
Page range:
131-141
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-25

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)