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Process Of Global Shocks Transmission To Domestic Food Price Level: Case Of Bangladesh

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  • Huda, Fakir Azmal

Abstract

The world experienced in dramatic price surge of food commodities since mid of 2007 to 2008. It was claimed that the crisis were being mainly for backdrop of global shocks in food and energy price. But how the shocks come to domestic market from external sources is a researchable phenomenon. Surprisingly few attempts have been made to systematically analysis of shock transmission from international to domestic market. The study analyzed the effect of global commodity market factors and domestic exchange rate development on domestic food price in Bangladesh. A bi-variants co-integration approach was applied for the analysis of shock transmission. Finally an error correction model was developed. The overall magnitudes of the pass through suggest that only 46 per cent of the total world shock pass-through in domestic economy.

Suggested Citation

  • Huda, Fakir Azmal, 2014. "Process Of Global Shocks Transmission To Domestic Food Price Level: Case Of Bangladesh," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(2), pages 1-16, April.
    • Handle: RePEc:ags:ijfaec:168584
    DOI: 10.22004/ag.econ.168584
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    References listed on IDEAS

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    Cited by:

    1. Rahman, Mohammad Chhiddikur, 2020. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 242248, March.
    2. Rahman, Mohammad Chhiddikur, 2018. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 251114, March.

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