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Abstract

Brazil is the largest exporter and third largest producer in the chicken meat market. Consequently, it is important to know the relationship between domestic and export prices. Through the Granger causation method and the cointegrating method of Engle and Granger and the Johansen one, this study aims to verify the hypothesis of long-term relationship between both domestic and export prices of chicken meat. The results indicate that prices are cointegrated. The conclusion is that the prices received by the Brazilian producers are possibly sensible to the behavior of world market prices, and therefore they should worried about internal factors which may enlarge differences between both prices.

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