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The Extent Of The World Coffee Market

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  • Atanu Ghoshray

Abstract

This paper employs a novel method to determine whether the prices of various types of coffee are co‐integrated. In the spirit of Stigler's arbitrage definition of the market, an attempt is made to test whether all the prices co‐integrate in pairs, implying that there is a single market for coffee. This test for co‐integration is carried out using both linear and non‐linear approaches. This finding demonstrates that the conclusions drawn from the linear and non‐linear tests may be drastically different.

Suggested Citation

  • Atanu Ghoshray, 2010. "The Extent Of The World Coffee Market," Bulletin of Economic Research, Wiley Blackwell, vol. 62(1), pages 97-107, January.
    • Handle: RePEc:bla:buecrs:v:62:y:2010:i:1:p:97-107
    DOI: 10.1111/j.1467-8586.2009.00318.x
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    2. Fousekis, Panos & Grigoriadis, Vasilis, 2016. "Spatial price dependence by time scale: Empirical evidence from the international butter markets," Economic Modelling, Elsevier, vol. 54(C), pages 195-204.
    3. Holmes, Mark J. & Otero, Jesús, 2023. "Psychological price barriers, El Niño, La Niña: New insights for the case of coffee," Journal of Commodity Markets, Elsevier, vol. 31(C).
    4. Sephton, Peter S., 2019. "El Niño, La Niña, and a cup of Joe," Energy Economics, Elsevier, vol. 84(C).
    5. Otero, Jesús & Argüello, Ricardo & Oviedo, Juan Daniel & Ramírez, Manuel, 2018. "Explaining coffee price differentials in terms of chemical markers: Evidence from a pairwise approach," Economic Modelling, Elsevier, vol. 72(C), pages 190-201.
    6. Heigermoser, Maximilian & Götz, Linde & Svanidze, Miranda, 2018. "Egypt’S Wheat Tenders – A Public Notice Board For Black Sea Grain Notations?," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275853, German Association of Agricultural Economists (GEWISOLA).
    7. John M. Fry & Baoying Lai & Mark Rhodes, 2011. "The interdependence of Coffee spot and futures market," Working Papers 2011.1, International Network for Economic Research - INFER.

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