The Impact Of Petroleum Prices On Vegetable Oils Prices: Evidence From Cointegration Tests
AbstractThis paper investigate the long-term relationship between the petroleum and vegetable oils prices represented by palm, soybean, sunflower and rapeseed oils prices. To that end, the bivariate cointegration approach using Engle-Granger two-stage estimation procedure is applied. The study utilises monthly data over the period of January 1983 through March 2008. The results provide a strong evidence of long-run equilibrium relation between the two products prices. The estimates of the error correction models reveal a unidirectional long-run causality flowing from petroleum to each of the vegetable oils prices under study.
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Bibliographic InfoPaper provided by Agecon Search in its series Miscellaneous Papers with number 46251.
Date of creation: 15 Dec 2008
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Vegetable oils prices; petroleum prices; cointegration; causality tests; Agribusiness; Demand and Price Analysis; Marketing; Q11 Agricultural Prices;
Find related papers by JEL classification:
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-10 (All new papers)
- NEP-ENE-2009-01-10 (Energy Economics)
- NEP-MKT-2009-01-10 (Marketing)
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