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Transmission of the International Price of Maize to the Mexican Regions

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  • Nuno-Ledesma, Jose G.

Abstract

Are variations in international prices of corn transmitted to local markets in Mexico? How homogeneous is the transmission across the different regions of the country? I estimate to what extent changes in international prices of maize are transmitted to the different Mexican sub-national regions. The price of white maize in the Mexican regions is cointegrated with the international price of yellow maize but not with the international price of the Argentina Up River maize. The north has the largest price transmission elasticity among the Mexican regions, although all of the regions exhibit similar elasticities. Changes in the international prices have permanent effects on the average of local prices in Mexico.

Suggested Citation

  • Nuno-Ledesma, Jose G., 2015. "Transmission of the International Price of Maize to the Mexican Regions," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204864, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:204864
    DOI: 10.22004/ag.econ.204864
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    Keywords

    Demand and Price Analysis;

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