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Market power and primary commodity prices: the case of copper


  • Rodrigo A. Cerda


This study identifies the economic fundamentals of the evolution of copper price. Its main hypothesis is that copper price is mainly determined by the evolution of demand of countries with large market power on that market. The novelty is that nominal exchange rates are one of the fundamentals of market power. Monthly data are used ranging from 1994 to 2003 and by means of a cointegration analysis; it is found that the Asian bloc significantly affects the price of this tradable good.

Suggested Citation

  • Rodrigo A. Cerda, 2007. "Market power and primary commodity prices: the case of copper," Applied Economics Letters, Taylor & Francis Journals, vol. 14(10), pages 775-778.
  • Handle: RePEc:taf:apeclt:v:14:y:2007:i:10:p:775-778 DOI: 10.1080/13504850601058508

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    Cited by:

    1. Bildirici, Melike E. & Turkmen, Ceren, 2015. "Nonlinear causality between oil and precious metals," Resources Policy, Elsevier, vol. 46(P2), pages 202-211.

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