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The linkage between the U.S. ethanol market and developing countries’ maize prices: a panel SVAR analysis

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  • Na Hao
  • Peter Pedroni
  • Gregory Colson
  • Michael Wetzstein

Abstract

U.S. ethanol expansion objectives are to improve both energy security and the environmental. However, this expansion has raised issues concerning its detrimental impacts on the price volatility of developing countries’ agricultural commodities. These concerns are addressed by empirically investigating the relations among U.S. ethanol and corn markets with developing countries’ corn prices. Results indicate that U.S. ethanol demand impacts on developing countries’ corn prices vary by country. Further, results reveal that the transmission effects of U.S. ethanol shocks are systematically stronger for countries with higher food import dependency and U.S. food aid.
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  • Na Hao & Peter Pedroni & Gregory Colson & Michael Wetzstein, 2017. "The linkage between the U.S. ethanol market and developing countries’ maize prices: a panel SVAR analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 629-638, September.
  • Handle: RePEc:bla:agecon:v:48:y:2017:i:5:p:629-638
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    File URL: http://hdl.handle.net/10.1111/agec.2017.48.issue-5
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    Cited by:

    1. Yves, Togba Boboy & Yoon, Seong-Min, 2018. "Swing in the Fed’s balance sheet policy and spillover effects on emerging Asian countries," MPRA Paper 87141, University Library of Munich, Germany.

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