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Unilateral reforms, trade blocs, and law of one price: MERCOSUR rice markets

Author

Listed:
  • Ralph Bierlen

    (Department of Agricultural Economics and Agribusiness, University of Arkansas-Fayetteville)

  • Eric J. Wailes

    (Department of Agricultural Economics and Agribusiness, University of Arkansas-Fayetteville)

  • Gail L. Cramer

    (Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR 72701)

Abstract

The current study tests for the law of one price (LOP) in MERCOSUR rice markets and between the MERCOSUR and major rice exporters in the light of recent Argentinean and Brazilian unilateral reforms and regional integration. Johansen's multivariate cointegration testing procedures support the existence of the LOP in both instances in the post- (but not the pre-) unilateral reform and regional integration period. This is consistent with the notion that bloc and nonbloc members can both enjoy the benefits of unilateral reforms by a bloc member when the external bloc tariff is not prohibitive. © 1998 John Wiley & Sons, Inc.

Suggested Citation

  • Ralph Bierlen & Eric J. Wailes & Gail L. Cramer, 1998. "Unilateral reforms, trade blocs, and law of one price: MERCOSUR rice markets," Agribusiness, John Wiley & Sons, Ltd., vol. 14(3), pages 183-198.
    • Handle: RePEc:wly:agribz:v:14:y:1998:i:3:p:183-198
    DOI: 10.1002/(SICI)1520-6297(199805/06)14:3<183::AID-AGR2>3.0.CO;2-X
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    References listed on IDEAS

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    1. S.B. Delpachitra & R.L. St Hill, 1994. "The law of one price: a test based on prices for selected inputs in New Zealand agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 10(3), pages 297-305, May.
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    7. Delpachitra, S. B. & St Hill, R. L., 1994. "The law of one price: a test based on prices for selected inputs in New Zealand agriculture," Agricultural Economics, Blackwell, vol. 10(3), pages 297-305, May.
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    Cited by:

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    4. Amer Ait Sidhoum & Teresa Serra, 2016. "Volatility Spillovers in the Spanish Food Marketing Chain: The Case of Tomato," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 45-63, January.
    5. Yavapolkul, Navin & Gopinath, Munisamy & Gulati, Ashok, 2004. "Post-Uruguay Round price linkages between developed and developing countries," MTID discussion papers 76, International Food Policy Research Institute (IFPRI).

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