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Price dynamics in the import wooden bed market of the United States

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  • Sun, Changyou

Abstract

Imports of wooden beds by the United States have been over one billion dollars since 2005. With a combined market share of more than 60%, China and Vietnam have dominated the import market in recent years. This trade surge has become a serious threat to the domestic furniture industry. Threshold cointegration and an asymmetric error correction model are used to analyze the price dynamics between China and Vietnam. China has been the price leader of the market and its price has been evolving more independently. The transmission between the prices of China and Vietnam has been asymmetric in both the long term and short term. Furniture firms in China and Vietnam adjust prices about two times faster when their profits are squeezed than stretched.

Suggested Citation

  • Sun, Changyou, 2011. "Price dynamics in the import wooden bed market of the United States," Forest Policy and Economics, Elsevier, vol. 13(6), pages 479-487, July.
  • Handle: RePEc:eee:forpol:v:13:y:2011:i:6:p:479-487
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Luo, Xinjian & Sun, Changyou & Jiang, Hongfei & Zhang, Ying & Meng, Qian, 2015. "International trade after intervention: The case of bedroom furniture," Forest Policy and Economics, Elsevier, vol. 50(C), pages 180-191.
    2. repec:ksp:journ1:v:4:y:2017:i:1:p:53-70 is not listed on IDEAS
    3. Njindan Iyke, Bernard, 2015. "On The Term Structure of South African Interest Rates: Cointegration and Threshold Adjustment," MPRA Paper 67681, University Library of Munich, Germany.
    4. Iyke, Bernard Njindan, 2015. "Electricity consumption and economic growth in Nigeria: A revisit of the energy-growth debate," Energy Economics, Elsevier, vol. 51(C), pages 166-176.
    5. Ning, Zhuo & Sun, Changyou, 2014. "Vertical price transmission in timber and lumber markets," Journal of Forest Economics, Elsevier, vol. 20(1), pages 17-32.
    6. Jarilkasin Ilyasov & Linde Götz & Kamiljon Akramov & Paul Dorosh & Thomas Glauben, 2016. "Market Integration and Price Transmission in Tajikistan’s Wheat Markets: Rising Like Rockets but Falling Like Feathers?," Working Papers id:11177, eSocialSciences.
    7. Hassanzoy, Najibullah & Ito, Shoichi & Isoda, Hiroshi, 4. "Global To Domestic Price Transmission Between The Segmented Cereals Markets: A Study Of Afghan Rice Markets," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(4).
    8. Njindan Iyke, Bernard, 2017. "Asymmetries in Yield Curves: Some Empirical Evidence from Ghana," MPRA Paper 79155, University Library of Munich, Germany.
    9. Amba Oyon Claude Marius & Taoufiki Mbratana & Kane Gilles Quentin, 2017. "Assessing the current account sustainability in ECCAS economies: A dual cointegration analysis," Economics Bulletin, AccessEcon, vol. 37(3), pages 1873-1894.
    10. repec:eee:energy:v:148:y:2018:i:c:p:537-545 is not listed on IDEAS
    11. Ilyasov, Jarilkasin & Goetz, Linde & Akramov, Kamiljon & Dorosh, Paul & Glauben, Thomas, 2015. "Market Integration and PRice Transmission in Tajikistan's Wheat Markets" Rising like rockets but falling like feathers?," 2015 Conference, August 9-14, 2015, Milan, Italy 211786, International Association of Agricultural Economists.

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