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Causal Relationships Between Grain, Meat Prices And Exchange Rates

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  • Musunuru, Naveen Musunuru

Abstract

Understanding agricultural commodity price relationships are important as they help producers improve their awareness regarding production costs and ultimately aid in income determination. The present paper empirically examines the dynamic interrelationships among grain, meat prices and the U.S. dollar exchange rate. Johansen cointegration tests reveal no cointegrating relationships among the study variables. Majority of the commodities studied in the paper exhibited unidirectional causality except for corn and lean hogs. The vector autoregression (VAR) model results indicate that the grain and meat prices are influenced by their own past prices. The role of exchange rates is found to be limited in linking the agricultural commodities

Suggested Citation

  • Musunuru, Naveen Musunuru, 2017. "Causal Relationships Between Grain, Meat Prices And Exchange Rates," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(4), October.
    • Handle: RePEc:ags:ijfaec:266439
    DOI: 10.22004/ag.econ.266439
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    References listed on IDEAS

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    Cited by:

    1. Anh Tru Nguyen, 2018. "The Relationship among Economic Growth, Trade, Unemployment, and Inflation in South Asia: A Vector Autoregressive Model Approach," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(2), pages 165-172.
    2. Klára Čermáková & Eduardo Aguiar Henrique Filho, 2021. "Effects of Expansionary Monetary Policy on Agricultural Commodities Market," Sustainability, MDPI, vol. 13(16), pages 1-21, August.

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