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Influences Of The Governmental Market Interventions On Wheat Markets In Serbia During The Food Crisis 2007/2008

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  • Djuric, Ivan
  • Goetz, Linde
  • Glauben, Thomas

Abstract

This paper analyzes how the market interventions of the Serbian government during the food crisis 2007/2008, inter alia a de facto export ban, have affected domestic wheat markets. Besides a comprehensive description of the crisis policy and its effects on the Serbian wheat market, we investigate how it influences the equilibrium and stability of the Serbian wheat market and its integration with the world market within a price transmission model. Applying a Markov-switching error correction model to weekly wheat grower prices in Serbia and world market prices, two states of the wheat market are identified. Our results suggest that although the long-run price elasticity did not change during the crisis, the market equilibrium was disrupted and the market stability reduced. Also, we find that the price dampening effect of the export restrictions was only short-lived, and that Serbian wheat grower prices even increased above the world market level.

Suggested Citation

  • Djuric, Ivan & Goetz, Linde & Glauben, Thomas, 2011. "Influences Of The Governmental Market Interventions On Wheat Markets In Serbia During The Food Crisis 2007/2008," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114438, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114438
    DOI: 10.22004/ag.econ.114438
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    References listed on IDEAS

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    6. Goetz, Linde & Glauben, Thomas & Brümmer, Bernhard, 2010. "Impacts of Export Controls On Wheat Markets During the Food Crisis 2007/2008 in Russia and Ukraine," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61626, Agricultural and Applied Economics Association.
    7. Fackler, Paul L. & Goodwin, Barry K., 2001. "Spatial price analysis," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 17, pages 971-1024, Elsevier.
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    Cited by:

    1. Listorti, Giulia & Esposti, Roberto, 2012. "Horizontal Price Transmission in Agricultural Markets: Fundamental Concepts and Open Empirical Issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(1), pages 1-28, April.
    2. Jolejole-Foreman, Maria Christina & Mallory, Mindy L. & Baylis, Katherine R., 2013. "Impact of Wheat and Rice Export Ban on Indian Market Integration," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150595, Agricultural and Applied Economics Association.
    3. Roberto Esposti & Giulia Listorti, 2013. "Agricultural price transmission across space and commodities during price bubbles," Agricultural Economics, International Association of Agricultural Economists, vol. 44(1), pages 125-139, January.

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    Keywords

    Agricultural and Food Policy; Crop Production/Industries;

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