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Response of Cotton to Oil Price Shocks

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  • Mutuc, Maria Erlinda M.
  • Pan, Suwen
  • Hudson, Darren

Abstract

This paper shows that the response of cotton prices in the U.S. to fluctuations in oil prices in the international market may differ greatly depending on whether the increase is driven by demand or supply shocks in the crude oil market. In the long-run, around 3 percent of the variability in cotton prices can be attributed to shocks to global demand for industrial commodities while none can be traced to oil supply shocks

Suggested Citation

  • Mutuc, Maria Erlinda M. & Pan, Suwen & Hudson, Darren, 2010. "Response of Cotton to Oil Price Shocks," Conference Papers 96675, Texas Tech University, Department of Agricultural and Applied Economics.
  • Handle: RePEc:ags:ttudco:96675
    DOI: 10.22004/ag.econ.96675
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    File URL: https://ageconsearch.umn.edu/record/96675/files/Resp.CottonOilPrice.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Richard Jaimes & Reyer Gerlagh, 2017. "Resource-Richness and Economic Growth in Contemporary U.S," CESifo Working Paper Series 6778, CESifo.
    2. Abdulaziz Shehu & Shafii Sayuti Abdullah & Nasiru Alhaji Yau, 2019. "Asymmetric Effect of Oil Shocks on Food Prices in Nigeria: A Non Linear Autoregressive Distributed Lags Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 128-134.
    3. Nazlioglu, Saban, 2011. "World oil and agricultural commodity prices: Evidence from nonlinear causality," Energy Policy, Elsevier, vol. 39(5), pages 2935-2943, May.
    4. Reboredo, Juan C., 2012. "Do food and oil prices co-move?," Energy Policy, Elsevier, vol. 49(C), pages 456-467.
    5. Jaimes, Richard & Gerlagh, Reyer, 2020. "Resource-richness and economic growth in contemporary U.S," Energy Economics, Elsevier, vol. 89(C).
    6. Nazlioglu, Saban & Soytas, Ugur, 2012. "Oil price, agricultural commodity prices, and the dollar: A panel cointegration and causality analysis," Energy Economics, Elsevier, vol. 34(4), pages 1098-1104.
    7. Guellil, Mohammed Seghir & Benbouziane, Mohamed, 2018. "Volatility Linkages between Agricultural Commodity Prices, Oil Prices and Real USD Exchange Rate || Vínculos de volatilidad entre precios de productos agrícolas, precios del petróleo y tipo de cambio ," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 26(1), pages 71-83, Diciembre.
    8. Nazlioglu, Saban & Soytas, Ugur, 2011. "World oil prices and agricultural commodity prices: Evidence from an emerging market," Energy Economics, Elsevier, vol. 33(3), pages 488-496, May.

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    More about this item

    Keywords

    Demand and Price Analysis; Industrial Organization;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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