IDEAS home Printed from https://ideas.repec.org/a/ibn/jasjnl/v11y2024i15p14.html
   My bibliography  Save this article

Market Integration in the International Market of Soybeans: Are GM Soy and Non-GM Soy Markets Integrated?

Author

Listed:
  • Guillermo Andrés Larre

Abstract

This paper aims to study market integration in the international trade of soybeans from 1999 to 2019. The hypothesis is that the market remained integrated between genetically modified (GM) and non-GM soy, even after stringent regulations against GM soy in major importers starting in 1999. Using FOB prices from major exporters of GM soy (USA and Argentina) and non-GM soy (Brazil), I test for market integration with cointegration analysis and Granger causality tests. All tests show that the market between all three exporters remained integrated throughout the sample period. Furthermore, Granger causality tests show that USA remains the sole price leader. Short run elasticities for reactions to American price changes in Brazil and Argentina are 0.33 and 0.25, respectively. The results validate the Law of One Price and inform policy decisions and forecasts efforts in this valuable commodity.

Suggested Citation

  • Guillermo Andrés Larre, 2024. "Market Integration in the International Market of Soybeans: Are GM Soy and Non-GM Soy Markets Integrated?," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 11(15), pages 1-14, April.
    • Handle: RePEc:ibn:jasjnl:v:11:y:2024:i:15:p:14
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/jas/article/download/0/0/40548/41790
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/jas/article/view/0/40548
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zapata, Hector O & Rambaldi, Alicia N, 1997. "Monte Carlo Evidence on Cointegration and Causation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 285-298, May.
    2. Bruce Jianhe Liu & Yubin Wang & Jingjing Wang & Xin Wu & Shu Zhang, 2015. "Is China the price taker in soybean futures?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 7(3), pages 389-404, September.
    3. Bruce Jianhe Liu & Yubin Wang & Jingjing Wang & Xin Wu & Shu Zhang, 2015. "Is China the price taker in soybean futures?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 7(3), pages 389-404, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sisi Qin & Wee‐Yeap Lau, 2023. "Cross‐border and cross‐commodity volatility spillover effects of Chinese soybean futures," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 43(12), pages 1836-1852, December.
    2. Zeynel Abidin Ozdemir, 2010. "Dynamics Of Inflation, Output Growth And Their Uncertainty In The Uk: An Empirical Analysis," Manchester School, University of Manchester, vol. 78(6), pages 511-537, December.
    3. Ilham Haouas & Naceur Kheraief & Arusha Cooray & Syed Jawad Hussain Shahzad, 2019. "Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries," Working Papers 1294, Economic Research Forum, revised 2019.
    4. Bashiri Behmiri, Niaz & Pires Manso, José R., 2012. "Does Portuguese economy support crude oil conservation hypothesis?," Energy Policy, Elsevier, vol. 45(C), pages 628-634.
    5. Sung Yu-Chi, 2018. "Revisiting the Tourism-Led Growth Hypothesis in a Dual Model Using Mwald Granger Causality Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(8), pages 1102-1110, August.
    6. Emre Aksoy, 2013. "Relationships between Employment and Growth from Industrial Perspective by Considering Employment Incentives: The Case of Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 74-86.
    7. Sy-Hoa Ho & Rim Oueghlissi & Riadh El Ferktaji, 2024. "Testing for Causality Between Economic Growth and Environmental, Social, and Governance Performance: New Evidence from a Global Sample," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7769-7787, June.
    8. Zapata, Hector O. & Gil, Jose M., 1999. "Cointegration and causality in international agricultural economics research," Agricultural Economics, Blackwell, vol. 20(1), pages 1-9, January.
    9. Andersson, Björn, 1999. "On the Causality Between Saving and Growth: Long- and Short-Run Dynamics and Country Heterogeneity," Working Paper Series 1999:18, Uppsala University, Department of Economics.
    10. AFZAL, Muhammad, 2013. "National Savings And Foreign Capital In Pakistan," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(2), pages 197-206.
    11. Shahzad, Syed Jawad Hussain & Naifar, Nader & Hammoudeh, Shawkat & Roubaud, David, 2017. "Directional predictability from oil market uncertainty to sovereign credit spreads of oil-exporting countries: Evidence from rolling windows and crossquantilogram analysis," Energy Economics, Elsevier, vol. 68(C), pages 327-339.
    12. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    13. Akinfenwa, Samson O. & Qasmi, Bashir A., 2014. "Ethanol, the Agricultural Economy, and Rural Incomes in the United States: A Bivariate Econometric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(2), pages 1-15, August.
    14. Umoru David & Tizhe N. Ann, 2014. "Causality Dynamics between Money Supply and Inflation in Nigeria: A Toda-Yamamoto Test and Error Correction Analysis," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 3(2), pages 63-75.
    15. Eita, Joel Hinaunye & Mbazima, Daisy, 2008. "The Causal Relationship Between Government Revenue and Expenditure in Namibia," MPRA Paper 9154, University Library of Munich, Germany.
    16. Akinfenwa, Samson O. & Qasmi, Bashir A., 2014. "Ethanol, the Agricultural Economy, and Rural Incomes in the United States: A Bivariate Econometric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-15.
    17. Michieka, Nyakundi M. & Fletcher, Jerald & Burnett, Wesley, 2013. "An empirical analysis of the role of China’s exports on CO2 emissions," Applied Energy, Elsevier, vol. 104(C), pages 258-267.
    18. Aamer Abu-qarn, 2010. "The Defence-Growth Nexus Revisited: Evidence From The Israeli-Arab Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 291-300.
    19. Oscar Chiwira, 2021. "The Co-Integrating Relationship between Financial Inclusion and Economic Growth in the Southern African Development Community," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 9(3), pages 170-188.
    20. Wolde-Rufael, Yemane, 2006. "Electricity consumption and economic growth: a time series experience for 17 African countries," Energy Policy, Elsevier, vol. 34(10), pages 1106-1114, July.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:jasjnl:v:11:y:2024:i:15:p:14. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.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.