Linkage between World and Domestic Prices of Rice under the regime of Agricultural Trade Liberalization in Bangladesh
The paper examines the relationship between the world market and domestic market prices of rice for Bangladesh in the regime of agricultural trade liberalization. The long run price relationship information is an important piece of information for the policy makers in formulating domestic polices and negotiating trade policies at the international level. The monthly data used for this study are taken from different sources, the Food outlook, FAO and Global Information and Early Warning System, FAO and the Bangladesh Bank for the period June 1998 to July 2007. Both Engle-Granger bi-variate and Johansen multivariate cointegration tests were used for the results sensitivity. We sequentially proceed to estimate the standard error correction model. The results showed that there is a long run equilibrium relationship between the world and the domestic prices and the relationship is uni-directional, meaning that, the domestic prices adjust to the world prices but not vice-versa. So the policy to ensure food security (via food price stability and price risk management) should be carefully designed as the movement of the world market price is higher and distorted and many consumers depend on the markets for their food, especially in the case of Bangladesh.
|Date of creation:||2010|
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www4.agr.gc.ca
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yavapolkul, Navin & Gopinath, Munisamy & Gulati, Ashok, 2004. "Post-Uruguay Round price linkages between developed and developing countries," MTID discussion papers 76, International Food Policy Research Institute (IFPRI).
- Alberto Zezza & Benjamin Davis & Carlo Azzarri & Katia Covarrubias & Luca Tasciotti & Gustavo Anriquez, 2008.
"The Impact of Rising Food Prices on the Poor,"
08-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Zezza, Alberto & Davis, Benjamin & Azzarri, Carlo & Covarrubias, Katia & Tasciotti, Luca & Anriquez, Gustavo, 2009. "The Impact of Rising Food Prices on the Poor," 2009 Conference, August 16-22, 2009, Beijing, China 51696, International Association of Agricultural Economists.
When requesting a correction, please mention this item's handle: RePEc:ags:aare10:58878. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.