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How well is the Russian wheat market functioning? A comparison with the corn market in the USA

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  • Svanidze, Miranda
  • Götz, Linde

Abstract

Given Russia’s leading position in the world wheat trade, how well its grain markets function becomes very important question to evaluate the state of future global food security. We use a threshold vector error correction model to explicitly account for the influence of trade costs on price relationships in the grain markets of Russia and the USA. In addition, we study impact of market characteristics on regional wheat market integration. Empirical evaluation shows that distance between markets, interregional trade flows, export orientation, export tax and export ban all have a significant impact on the magnitude of wheat market integration.

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  • Svanidze, Miranda & Götz, Linde, 2017. "How well is the Russian wheat market functioning? A comparison with the corn market in the USA," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261434, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae17:261434
    DOI: 10.22004/ag.econ.261434
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    References listed on IDEAS

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    1. Götz, Linde & Djuric, Ivan & Nivievskyi, Oleg, 2016. "Regional wheat price effects of extreme weather events and wheat export controls in Russia and Ukraine," IAMO Discussion Papers 235157, Institute of Agricultural Development in Transition Economies (IAMO).
    2. Hansen, Bruce E. & Seo, Byeongseon, 2002. "Testing for two-regime threshold cointegration in vector error-correction models," Journal of Econometrics, Elsevier, vol. 110(2), pages 293-318, October.
    3. Linde Götz & Ivan Djuric & Oleg Nivievskyi, 2016. "Regional Price Effects of Extreme Weather Events and Wheat Export Controls in Russia and Ukraine," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 741-763, September.
    4. Friederike Greb & Stephan von Cramon-Taubadel & Tatyana Krivobokova & Axel Munk, 2013. "The Estimation of Threshold Models in Price Transmission Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 900-916.
    5. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    7. Fackler, Paul L. & Goodwin, Barry K., 2001. "Spatial price analysis," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 17, pages 971-1024, Elsevier.
    8. repec:zbw:iamodp:235157 is not listed on IDEAS
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    1. Guo, Jinggang & Johnston, Craig M.T., 2021. "Do protectionist trade policies integrate domestic markets? Evidence from the Canada-U.S. softwood lumber dispute," Forest Policy and Economics, Elsevier, vol. 130(C).

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