Process Of Global Shocks Transmission To Domestic Food Price Level: Case Of Bangladesh
AbstractThe world experienced in dramatic price surge of food commodities since mid of 2007 to 2008. It was claimed that the crisis were being mainly for backdrop of global shocks in food and energy price. But how the shocks come to domestic market from external sources is a researchable phenomenon. Surprisingly few attempts have been made to systematically analysis of shock transmission from international to domestic market. The study analyzed the effect of global commodity market factors and domestic exchange rate development on domestic food price in Bangladesh. A bi-variants co-integration approach was applied for the analysis of shock transmission. Finally an error correction model was developed. The overall magnitudes of the pass through suggest that only 46 per cent of the total world shock pass-through in domestic economy.
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Bibliographic InfoArticle provided by Niğde University, Faculty of Economics and Administrative Sciences in its journal International Journal of Food and Agricultural Economics (IJFAEC).
Volume (Year): 2 (2)
Issue (Month): 2 ()
Co-integration; error correction model; instability; pass-through; and price transmission; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Food Security and Poverty;
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