IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v62y2018i4p563-575.html
   My bibliography  Save this article

Testing vertical price transmission for Vietnam's Robusta coffee

Author

Listed:
  • Thang Chien Mai
  • Shamim Shakur
  • Sue Cassells

Abstract

Vietnam has undergone market reforms over the last three decades; and as a consequence, the coffee sector has become increasingly market‐driven. The success of the government's liberalisation policies in terms of market efficiency is investigated by examining the transmission of both positive and negative price changes for Robusta coffee between export and farmgate prices. We used a threshold vector error correction model and high‐frequency daily data. The primary result here is that of a symmetric price transmission between export and farm‐level prices. This result holds when tested with weekly price data, derived from the daily data. Farmgate prices respond faster to decreases than increases in export prices when the long‐run deviation exceeds a certain threshold. These price changes are transmitted within several days. This research also confirms the importance of transaction costs, and other price frictions mostly ignored in prior analyses for coffee.

Suggested Citation

  • Thang Chien Mai & Shamim Shakur & Sue Cassells, 2018. "Testing vertical price transmission for Vietnam's Robusta coffee," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), pages 563-575, October.
    • Handle: RePEc:bla:ajarec:v:62:y:2018:i:4:p:563-575
    DOI: 10.1111/1467-8489.12260
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8489.12260
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8489.12260?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. Fabinin, Akem Nina, 2021. "Pulse, Export and Staple Convenience Food: Market Analysis in West Africa," 2021 Conference, August 17-31, 2021, Virtual 315370, International Association of Agricultural Economists.
    2. Luca Cattivelli & Federico Antonioli, 2023. "When cointegration is interrupted: Price transmission analysis in the Italian dairy‐feed industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 744-761, July.
    3. Arida, Agustina & Masbar, Raja & Majid, M. Shabri Abd. & Indra, I., 2023. "Does vertical asymmetric price transmission exist in the rice markets?," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(1), March.

    More about this item

    Statistics

    Access and download statistics

    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:bla:ajarec:v:62:y:2018:i:4:p:563-575. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.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.