@article{Braha:207843,
      recid = {207843},
      author = {Braha, Kushtrim and Rajcaniova, Miroslava and Qineti,  Artan},
      title = {Spatial Price Transmission and Food Security: The case of  Kosovo},
      address = {2015-06},
      number = {1054-2016-85976},
      pages = {15},
      year = {2015},
      abstract = {Interest on the empirical assessment of the price  transmission has been extended particularly after the  global food price
shocks of 2007-2008. This study is  focused on the spatial price transmission analysis from the  world commodity
markets into the agricultural commodity  markets in Kosovo. Kosovo is characterized as a rural  economy, where more
than 60% of population is living in  rural areas. Kosovo is net food importer and implications  of the recent global food
price hikes were affecting  considerably domestic food demand as well as were raising  concerns of food security.
Findings of this paper suggest  that Kosovo is significantly exposed to the food security  risk factors. The set of causal
food insecurity factors has  been identified in this paper. Official records demonstrate  that self-sufficiency ratio of the
key food staples in  Kosovo varies from 75% for wheat and meat to 82% for maize.  On the other hand, annual share of
household food  expenditures in total consumption exceeds 40%. Empirical  analysis of this paper are based on
estimations of unit  root tests, cointegration tests, Granger causality tests,  estimation of error correction models and test
of price  transmission asymmetry. Spatial price transmission analysis  found that Kosovo is vulnerable to the price
transmitting  signals from the world market. Empirical findings suggest  strong evidence of asymmetry for world and
domestic prices  of wheat and beef and weak evidence of asymmetry for barley  and chicken. Based on the results of the
error correction  models it can be assumed that that prices in Kosovo react  with different speed to positive and negative
deviations,  while world prices do not react to shocks in Kosovo prices.  Kosovo as a price taker in the global trade has
limited  policy instruments to respond to the global food price  vulnerability. The main food security policy axis should
be  directed on productivity improvement and enhancement of the  competitiveness of agriculture in those sectors in
which  Kosovo has comparative advantage.},
      url = {http://ageconsearch.umn.edu/record/207843},
      doi = {https://doi.org/10.22004/ag.econ.207843},
}