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Market Integration and Price Transmission in theWorld Rice Export Markets

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  • Chen, Bo
  • Saghaian, Sayed

Abstract

This paper investigates market integration and asymmetric price transmission in the world rice export markets. Using monthly rice prices from Thailand, Vietnam, and United States, we employ the Johansen test and estimate the threshold vector error correction model (TVECM). Our main findings are that export prices in the three countries are cointegrated, with Thailand and the United States the price leaders, and that the Vietnamese price adjusts faster to long-run equilibrium when it is above its equilibrium level with Thai and U.S. prices. These results suggest market integration and competition rather than collusion are prevalent in world rice markets. Policy implications are also briefly discussed.

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  • Chen, Bo & Saghaian, Sayed, 2016. "Market Integration and Price Transmission in theWorld Rice Export Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-14.
    • Handle: RePEc:ags:jlaare:246174
    DOI: 10.22004/ag.econ.246174
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    2. Bairagi, S. & Mohanty, S., 2018. "Analysis of Price Transmission along the Cambodian Rice Value Chain," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277022, International Association of Agricultural Economists.
    3. A. Ford Ramsey & Barry K. Goodwin & William F. Hahn & Matthew T. Holt, 2021. "Impacts of COVID‐19 and Price Transmission in U.S. Meat Markets," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 441-458, May.
    4. Hanpil Moon & Jun Ho Seok, 2021. "Price relationship among domestic and imported beef products in South Korea," Empirical Economics, Springer, vol. 61(6), pages 3541-3555, December.
    5. Antonioli, Federico & Santeramo, Fabio Gaetano, 2022. "On Policy Interventions and Vertical Price Transmission: The Italian Milk Supply Chain Case," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    6. Seok, Jun Ho & Kim, GwanSeon & Reed, Michael R. & Kim, Soo-Eun, 2018. "The impact of avian influenza on the Korean egg market: Who benefited?," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 151-165.
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    8. Gbadebo A. Oladosu & Keith L. Kline & Johannes W. A. Langeveld, 2021. "Structural Break and Causal Analyses of U.S. Corn Use for Ethanol and Other Corn Market Variables," Agriculture, MDPI, vol. 11(3), pages 1-15, March.

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