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Testing Possible Causes of Asymmetric Price Transmission Behavior of Major Importers of U. S. Wheat

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  • Ajewole, Kayode
  • Johnson, Michael

Abstract

This study deals specifically with the international transmission of wheat prices wherein the effect of prices in one market impacts the prices of another. Specifically, it shows that import prices in some countries respond in an asymmetric fashion to changes in the export prices of U.S. wheat. Our results indicate that market concentration in the importing country influences price asymmetry and amount of price variability sends a sufficient clear signal to market participants. We also find that the 2008 financial and food price crisis changed the degree of asymmetry in most of the countries studied in this paper.

Suggested Citation

  • Ajewole, Kayode & Johnson, Michael, 2024. "Testing Possible Causes of Asymmetric Price Transmission Behavior of Major Importers of U. S. Wheat," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344396, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:cfcp15:344396
    DOI: 10.22004/ag.econ.344396
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    References listed on IDEAS

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    1. George Deltas, 2008. "Retail Gasoline Price Dynamics And Local Market Power," Journal of Industrial Economics, Wiley Blackwell, vol. 56(3), pages 613-628, September.
    2. Søren Johansen & Katarina Juselius, 1990. "Some Structural Hypotheses in a Multivariate Cointegration Analysis of the Purchasing Power Parity and the Uncovered Interest Parity for UK," Discussion Papers 90-05, University of Copenhagen. Department of Economics.
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    Keywords

    Demand and Price Analysis; International Relations/Trade;

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