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Impact of Government Intervention on Price Integration between Polish and World Wheat Markets

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  • Figiel, Szczepan
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    Abstract

    Market reforms implemented in Poland, especially broader openness to international trade, should result in increasing price integration between Polish and world markets for such internationally traded commodities like wheat. However, in a period of economic transformation, Polish agricultural prices have been very volatile which led to government intervention in the market. Mainly because of such practises, Polish monthly wheat prices were found, using regression and cointegration analysis, to be generally unrelated to selected world prices over the period of 1990/91 through 1996/97. The intervention also caused such market distortions as deviations of prices from a normally expected seasonal pattern.

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    File URL: http://purl.umn.edu/26456
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    Bibliographic Info

    Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

    Volume (Year): 01 (2000)
    Issue (Month): 2 (August)
    Pages:

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    Handle: RePEc:ags:aergaa:26456

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    1. Officer, Lawrence H., 1986. "The law of one price cannot be rejected: Two tests based on the tradable/nontradable price ratio," Journal of Macroeconomics, Elsevier, vol. 8(2), pages 159-182.
    2. Bruce L. Gardner, 1996. "Agricultural Support in Eastern Europe: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 808-809.
    3. Figiel, Szczepan & Scott, Tom & Varangis, Panos, 1997. "How government policies affect the relationship between Polish and world wheat prices," Policy Research Working Paper Series 1778, The World Bank.
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