Files
Abstract
This paper investigates market integration and asymmetric price transmission in the world rice
export markets. Using monthly rice prices from Thailand, Vietnam, and United States, we employ
the Johansen test and estimate the threshold vector error correction model (TVECM). Our main
findings are that export prices in the three countries are cointegrated, with Thailand and the United
States the price leaders, and that the Vietnamese price adjusts faster to long-run equilibrium when
it is above its equilibrium level with Thai and U.S. prices. These results suggest market integration
and competition rather than collusion are prevalent in world rice markets. Policy implications are
also briefly discussed.