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International Steam Coal Market Integration

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Listed:
  • Raymond Li
  • Roselyne Joyeux
  • Ronald D. Ripple

Abstract

This paper examines the hypothesis that there is a single economic market for the international steam coal industry and investigates the degree of steam coal market integration over time. A regression test of convergence is employed to test for group convergence within a panel of steam coal exporting countries. The long-run relations between international steam coal prices are tested through cointegration analysis and the Kalman Filter analysis is employed to examine the convergence path of the price series. Monthly Free on Board (F.O.B.) prices for Australia, China, Colombia, Indonesia, Poland and South Africa between January 1995 and July 2007 are used. Considering the outcomes of the three econometric techniques as a whole, we conclude that the international steam coal market is generally integrated.

Suggested Citation

  • Raymond Li & Roselyne Joyeux & Ronald D. Ripple, 2010. "International Steam Coal Market Integration," The Energy Journal, , vol. 31(2), pages 181-202, April.
    • Handle: RePEc:sae:enejou:v:31:y:2010:i:2:p:181-202
    DOI: 10.1177/01956574201031022
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    References listed on IDEAS

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    1. Asche, Frank & Osmundsen, Petter & Tveteras, Ragnar, 2002. "European market integration for gas? Volume flexibility and political risk," Energy Economics, Elsevier, vol. 24(3), pages 249-265, May.
    2. Siliverstovs, Boriss & L'Hegaret, Guillaume & Neumann, Anne & von Hirschhausen, Christian, 2005. "International market integration for natural gas? A cointegration analysis of prices in Europe, North America and Japan," Energy Economics, Elsevier, vol. 27(4), pages 603-615, July.
    3. repec:aen:journl:1996v17-02-a02 is not listed on IDEAS
    4. Perron, Pierre, 1997. "Further evidence on breaking trend functions in macroeconomic variables," Journal of Econometrics, Elsevier, vol. 80(2), pages 355-385, October.
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    2. repec:osf:thesis:c2t4d_v1 is not listed on IDEAS

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    JEL classification:

    • F0 - International Economics - - General

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