Producer to retailer price transmission in cereal markets of Ethiopia

Usman, Muhammed Abdella; Haile, Mekbib G.

doi:10.1007/s12571-017-0692-0

Cited by 11 publications

(7 citation statements)

References 37 publications

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“…While vector auto regressive (VAR) models check for size and speed of price adjustment among markets (Rapsomanikis et al, 2004), vector error correction (VECM) models check for long-run relationships mainly through the estimation of cointegration 8 among price series (Maitra, 2019). Both methods are used commonly in literature: Dawson and Dey, 2002, VAR;Ramadas et al, 2004, VAR;Baulch, 2008;Zahid et al, 2007;Trung et al, 2007;Tadesse, 2016;Usman and Haile, 2017;KC and Rajalaxmi, 2019;Ozturk, 2020, all use VECM. According to Rapsomanikis et al (2004), a commonly used method to estimate causality between prices is the Granger causality test. It provides information on which direction, if any, price transmission is occurring between two series.…”

Section: Review Of Literaturementioning

confidence: 99%

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Are Agricultural Markets in the Punjab Technically Efficient?

Zafar¹,

Hamid²,

Arshad³

2020

LJE

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We testthe technical efficiency, measured by the degreeof integration,of agriculture marketsfor five crops in the Punjabprovince of Pakistanusing daily wholesale market prices from the Agriculture Management Information System (AMIS). We findthat potato, onion and mango markets are well integrated both horizontally and vertically, with the speed of price adjustment in most cases (mango isthe exception) being very rapid. We also find that kinnow and basmati rice markets are bothvertically fairly well integrated. Furthermore, we findthat trends in cropping patternsover the period 2000 to 2014 are in line with the changing market demand and government priceinterventions. The reformsintroducedby thePunjab Agriculture Marketing Regulatory Authority (PAMRA) Act 2020,aimed atincreasing competition in agriculture markets,have the potential tosignificantly improve economic efficiency.

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Section: Review Of Literaturementioning

confidence: 99%

“…Ravallion, 1986; Palaskas and Harriss 1993;Gardner & Brooks, 1994;Baulch 1997;Dawson &Dey, 2002;Kaabia et al, 2002; Rapsomanikis et al, 2003;Ghosh, 2003; Weber & Lee, 2006; Trung et al, 2007;Zahid et al, 2007;Baulch, 2008;Bakus, 2013;Ramadas et al, 2014;Paul et al, 2015;Tadesse, 2016;Kharin et al, 2017;Usman & Haile, 2017;KC &Rajalaxmi, 2019;Ozturk, 2020. …”

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confidence: 99%

Are Agricultural Markets in the Punjab Technically Efficient?

Zafar¹,

Hamid²,

Arshad³

2020

LJE

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“…Any exporting firm needs to bear a fixed cost for building a distributional network overseas, and wholesalers connect farming operators to importers (Akerman 2010). Thus, the value chain structure takes several steps to deliver products to consumers, and the price connectivity of each stage has been studied by many articles with ECMs, many of which concentrate on the symmetry of price behavior (e.g., Rezitis and Tsionas 2019;Zingbagba et al 2019;McLaren 2015;Usman and Haile 2017;Abdulai 2002;Worako et al 2008).…”

Section: Introductionmentioning

confidence: 99%

Dynamic Transmissions and Volatility Spillovers between Global Price and U.S. Producer Price in Agricultural Markets

Guo

Tanaka

2020

JRFM

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A considerable number of studies have examined the relationship between global prices and local prices in food-importing nations, but the linkages between international prices and the producer prices of large agricultural exporters have been largely ignored. This paper analyzes the connections between world prices and U.S. producer prices in the wheat, soybeans, and corn markets using a vector error correction generalized autoregressive conditional heteroscedastic model with a multivariate Baba-Engle-Kraft Kroner specification (VECM-GARCH-BEKK) and cross-correlation function (CCF). Our findings indicate firstly that a long-run equilibrium relationship exists between international and U.S. producer prices for the three agricultural crops. It also finds a significant bidirectional causality-in-mean and causality-in-variance between international and U.S. producer prices for these crops. Finally, the empirical results suggest that international wheat and corn prices play a leading role in U.S. local markets in return transmissions and that U.S. wheat price can be considered to be a leading indicator of the global wheat price in volatility transmissions.

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“…The study on APT of wheat exported from North America showed that USA enterprises exporting low-quality wheat may reduce prices faster (to maintain market share) than Canadian exporters of high-quality wheat [8,25]. The causes of APT (principally transaction costs and market forces) have also been explored extensively for agricultural products markets in Europe, Asia, and Africa [26][27][28][29][30].…”

Section: Introductionmentioning

confidence: 99%

Asymmetric Price Transmission of Hardwood Lumber Imported by China after Imposition of the Comprehensive Commercial Logging Ban in All Natural Forests

Yang

Yin

Wang

2020

Forests

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The Comprehensive Commercial Logging Ban in All Natural Forests (CCLB) policy, introduced in April 2015, aims to protect all natural forests in China. It has impacted both China's domestic timber supply and imports. We investigated price transmission in China's hardwood lumber imports resulting from the implementation of this policy. We selected three hardwood lumber species, i.e., Sapelli (Entandrophragma), Mandshurica (Fraxinus), and Laurel (Terminalia), and used their daily prices from 30 April 2015 to 30 November 2017. Threshold co-integration and threshold error correction models are employed for this analysis. We identified a structural breakpoint on 30 November 2016, and consequently partitioned the data series into two parts for the two subperiods separated by the breakpoint. The empirical results indicated that there was asymmetric price transmission (APT) for both subperiods. Adjustment of positive price deviations to the long-term equilibrium levels was slower than that of negative price deviations. In the short term, the price of high-quality lumber evolved independently, whereas the price of lower-quality lumber tended to return to the equilibrium. The APT reflects a redistribution of welfare, benefiting the exporters more than the importers. We find that positive discrepancies in each price pair were inclined to be more persistent in the first subperiod than in the second subperiod. This could attribute to the fact that the degree of CCLB intervention in the former one was higher than in the latter one.

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Producer to retailer price transmission in cereal markets of Ethiopia

Cited by 11 publications

References 37 publications

Are Agricultural Markets in the Punjab Technically Efficient?

Are Agricultural Markets in the Punjab Technically Efficient?

Dynamic Transmissions and Volatility Spillovers between Global Price and U.S. Producer Price in Agricultural Markets

Asymmetric Price Transmission of Hardwood Lumber Imported by China after Imposition of the Comprehensive Commercial Logging Ban in All Natural Forests

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