IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/288695.html
   My bibliography  Save this article

Cointegration And Price Linkages In The Mercosur Beef Cattle Markets

Author

Listed:
  • Lanfranco, Bruno A.
  • Ferraro, Bruno
  • Rostán, Francisco

Abstract

This research provides empirical evidence of the degree of integration of Mercosur region beef cattle markets with the international market. Prices for six spatially distinct cattle markets located in the four countries were analyzed using a fractional cointegration approach. The analysis included the computation of fractional integration parameters and the error term of the cointegration equations. The null hypothesis of ‘separate markets’ could not be rejected in any of the cases. This conclusion is absolute for Argentina; there is strong evidence of separate markets with Uruguay, which was chosen as a proxy of the international market. For Brazil and Paraguay, empirical results may suggest a weak degree of market integration but not enough to reject the null hypothesis. Despite the common price and industry trends in the different markets, their responses to specific price shocks were dissimilar and, most importantly, the reversion of the prices to equilibrium was always slow

Suggested Citation

  • Lanfranco, Bruno A. & Ferraro, Bruno & Rostán, Francisco, 2019. "Cointegration And Price Linkages In The Mercosur Beef Cattle Markets," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 7(2), April.
    • Handle: RePEc:ags:ijfaec:288695
    DOI: 10.22004/ag.econ.288695
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/288695/files/Vol7.No2.pp159.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.288695?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paul Harris & Bruno Lanfranco & Binbin Lu & Alexis Comber, 2020. "Influence of Geographical Effects in Hedonic Pricing Models for Grass-Fed Cattle in Uruguay," Agriculture, MDPI, vol. 10(7), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:288695. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.