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Price Asymmetry of Coffee Beans: Evidence from Vietnam

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  • Mai, Thang Chien
  • Shakur, Shamim
  • Cassells, Sue

Abstract

The research evaluates the price transmission between export and farmgate prices for Vietnam’s Robusta coffee. Our findings suggest that minor asymmetry price transmission exists for export prices in the long-run and for farm prices in the short-run when thresholds are considered. Besides, the daily speed of adjustment is so high as to lead one to conclude that the price transmission is symmetric. Some possible explanations include the low concentration of local exporters, Robusta’s low quality, and coffee oversupply. Given the recent downward trend in global coffee bean prices, this result also implies that liberalisation current policies are inadequate to ensuring coffee farmers’ welfare.

Suggested Citation

  • Mai, Thang Chien & Shakur, Shamim & Cassells, Sue, 2016. "Price Asymmetry of Coffee Beans: Evidence from Vietnam," 2016 Conference, August 25-26, Nelson, New Zealand 260807, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar16:260807
    DOI: 10.22004/ag.econ.260807
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