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Global To Domestic Price Transmission Between The Segmented Cereals Markets: A Study Of Afghan Rice Markets

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  • Hassanzoy, Najibullah
  • Ito, Shoichi
  • Isoda, Hiroshi

Abstract

This paper examines cointegration and the difference in the extent of price transmission, and speed of adjustment between global and domestic prices of high and low quality rice. Unit root tests, cointegration tests and error correction models are employed in the analysis. While there are no comparable studies in the literature, the findings of this study indicate that the dynamics of price transmission may be different between high and low quality rice markets. That is, the extent of price transmission appears to be larger for the global prices of low quality rice whereas the speed of adjustment to the long-run equilibrium may be faster for domestic prices of high quality rice. Moreover, a shock in the global prices of low quality rice may have a long-lasting effect on domestic prices of low quality rice as compared to their high quality counterparts affecting domestic prices of high quality rice.

Suggested Citation

  • Hassanzoy, Najibullah & Ito, Shoichi & Isoda, Hiroshi, 2015. "Global To Domestic Price Transmission Between The Segmented Cereals Markets: A Study Of Afghan Rice Markets," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(4), pages 1-16, October.
    • Handle: RePEc:ags:ijfaec:229191
    DOI: 10.22004/ag.econ.229191
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    File URL: https://ageconsearch.umn.edu/record/229191/files/vol3.no4.pp27.pdf
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    References listed on IDEAS

    as
    1. Søren Johansen & Rocco Mosconi & Bent Nielsen, 2000. "Cointegration analysis in the presence of structural breaks in the deterministic trend," Econometrics Journal, Royal Economic Society, vol. 3(2), pages 216-249.
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    Cited by:

    1. Hassanzoy, Najibullah & Ito, Shoichi & Isoda, Hiroshi & Amekawa, Yuichiro, 2016. "The Effects Of Swings In Global Wheat Prices On The Domestic Markets In Afghanistan," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4), pages 1-14, October.
    2. Shuai Liu & Dingyu Liu & Sibo Ge, 2024. "Impact of external shocks on international corn price fluctuations," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(1), pages 1-11.
    3. Najibullah Hassanzoy & Shoichi Ito & Hiroshi Isoda & Yuichiro Amekawa, 2016. "A comparison of asymmetric price transmission from global to domestic markets between high and low quality grains: a case of Afghan rice markets," Economics Bulletin, AccessEcon, vol. 36(1), pages 537-552.
    4. Lizano, Víctor Rodríguez & Vega, Mercedes Montero, 2016. "Costa Rican Meat Value Chain Description: Price Transmission As A Tool," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(3), pages 1-11, July.

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