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Are ethanol markets globalized or regionalized?

Author

Listed:
  • Jose Areola Hernandez

    (ESC [Rennes] - ESC Rennes School of Business)

  • Gazi Salah Uddin

    (LIU - Linköping University)

  • Anupam Dutta

    (University of Vaasa)

  • Ali Ahmed

    (LIU - Linköping University)

  • Sang Hoon Kang

    (University of South Australia [Adelaide])

Abstract

This study investigates whether the US and Brazilian ethanol markets are globalized or regionalized (i.e., whether they are interdependent or independent) using weekly frequency data from July 2006 to December 2017. The empirical results indicate that the US ethanol market is unlinked to the Brazilian one in the short-run, however in the long-run they are globalized (interdependent) and co-influence each other. Asymmetric effects are identified between both ethanol markets and the Brazilian ethanol market Granger causes the US ethanol market. The findings help us understand the asymmetric dependence of the US ethanol market.

Suggested Citation

  • Jose Areola Hernandez & Gazi Salah Uddin & Anupam Dutta & Ali Ahmed & Sang Hoon Kang, 2020. "Are ethanol markets globalized or regionalized?," Post-Print hal-02898233, HAL.
    • Handle: RePEc:hal:journl:hal-02898233
    DOI: 10.1016/j.physa.2019.124094
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    Cited by:

    1. Capitani, Daniel H D & Gaio, Luiz Eduardo & Mattos, Fabio L. & Franco Da Silveira, Rodrigo Lanna & Cruz, Jose Cesar, 2024. "Corn ethanol expansion in Brazil: Are volatility interconnectedness changing?," 2024 Annual Meeting, July 28-30, New Orleans, LA 343612, Agricultural and Applied Economics Association.

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