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Abstract

The causality Granger test was used to assess the causal links between the prices of milk In selected European Union countries. The Granger test is based on the vector auto regression models - VAR. The conducted research allowed identifying causal relationships between the prices of milk in the following countries: Poland, Germany, France, the Czech Republic, and Slovakia. The research shows that milk prices in Poland depend on the prices in France, Germany, the Czech Republic and Slovakia, while milk prices in Slovakia are dependent on milk prices in Poland.

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