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Price interrelationships in the vegetable and tropical oils market

Author

Listed:
  • A. D. Owen
  • K. Chowdhury
  • J. R. R. Garrido

Abstract

The relationship between vegetable and tropical oils prices is investigated utilizing a vector autoregressive approach. Despite the apparent similarities between these oil prices in terms of their general pattern of movement over time, the relationships were not found to be strong enough to label them as 'cointegrated series'. Further analysis indicates that substitution relationships appear to drive price movements in the short run, while market-based structural factors for each of the oils are important elements in the price formation process in the long run.

Suggested Citation

  • A. D. Owen & K. Chowdhury & J. R. R. Garrido, 1997. "Price interrelationships in the vegetable and tropical oils market," Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 119-124.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:119-124
    DOI: 10.1080/000368497327470
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    References listed on IDEAS

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    1. A. D. Owen & K. Chowdhury & J. R. R. Garrido, 1996. "A market share model for vegetable and tropical oils," Applied Economics Letters, Taylor & Francis Journals, vol. 3(2), pages 95-99.
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    7. G. R. Griffith & Karl D. Meilke, 1979. "Relationships among North American Fats and Oils Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 335-341.
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    Cited by:

    1. Ubilava, David & holt, Matt, 2013. "El Ni~no southern oscillation and its effects on world vegetable oil prices: assessing asymmetries using smooth transition models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 1-25.
    2. Peri, Massimo & Baldi, Lucia, 2010. "Vegetable oil market and biofuel policy: An asymmetric cointegration approach," Energy Economics, Elsevier, vol. 32(3), pages 687-693, May.
    3. Campiche, Jody L. & Bryant, Henry L. & Richardson, James W. & Outlaw, Joe L., 2007. "Examining the Evolving Correspondence Between Petroleum Prices and Agricultural Commodity Prices," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9881, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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