IDEAS home Printed from https://ideas.repec.org/p/fpr/mtiddp/76.html
   My bibliography  Save this paper

Post-Uruguay Round price linkages between developed and developing countries

Author

Listed:
  • Yavapolkul, Navin
  • Gopinath, Munisamy
  • Gulati, Ashok

Abstract

The Uruguay Round Agreement on Agriculture attempted to lower distortions in the global agricultural markets. However, the significant fall in commodity prices in late 1990s may have reduced the incentives for both developed and developing countries to better integrate into the world markets. This study analyzes price linkages and adjustment between developed and developing countries during the post-Uruguay Round period. Prices of two key commodity markets, long-grain rice and medium-hard wheat, are assembled for major exporters and producers. Results from the multivariate cointegration analysis suggest partial market integration between developed and developing countries in the post-Uruguay Round period. Developed countries are found to be price leaders in these two markets, and in most cases, the changes in their prices have relatively large impacts on those of the developing countries. The new entrants into world markets (Vietnam and Argentina) have faced considerable price adjustment due to changes in the developed countries' prices.

Suggested Citation

  • 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).
  • Handle: RePEc:fpr:mtiddp:76
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/mtidp76.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gary W. Brester & Barry K. Goodwin, 1993. "Vertical and Horizontal Price Linkages and Market Concentration in the U.S. Wheat Milling Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(3), pages 507-519.
    2. Campbell, John Y & Shiller, Robert J, 1987. "Cointegration and Tests of Present Value Models," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 1062-1088, October.
    3. David A. Bessler & Derya G. Akleman, 1998. "Farm Prices, Retail Prices, and Directed Graphs: Results for Pork and Beef," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1144-1149.
    4. Samarendu Mohanty & E. Wesley F. Peterson & Damell B. Smith, 1996. "Relationships between U.S. and Canadian Wheat Prices: Cointegration and Error Correction Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(3), pages 265-276, November.
    5. Wilson, William W., 1989. "Differentiation And Implicit Prices In Export Wheat Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), July.
    6. Taylor, Earl L. & Bessler, David A. & Waller, Mark L. & Rister, M. Edward, 1996. "Dynamic relationships between US and Thai rice prices," Agricultural Economics, Blackwell, vol. 14(2), pages 123-133, July.
    7. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    8. Ralph Bierlen & Eric J. Wailes & Gail L. Cramer, 1998. "Unilateral reforms, trade blocs, and law of one price: MERCOSUR rice markets," Agribusiness, John Wiley & Sons, Ltd., vol. 14(3), pages 183-198.
    9. Bruno Larue, 1991. "Is Wheat a Homogeneous Product?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 103-117, July.
    10. P. J. Dawson & P. K. Dey, 2002. "Testing for the law of one price: rice market integration in Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(4), pages 473-484.
    11. N/A, 1985. "Asia," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 80-87, January.
    12. Mitchell, Donald O & Duncan, Ronald C, 1987. "Market Behavior of Grains Exporters," World Bank Research Observer, World Bank Group, vol. 2(1), pages 3-21, January.
    13. Brorsen, B Wade & Chavas, Jean-Paul & Grant, Warren R, 1984. "Dynamic Relationships of Rice Import Prices in Europe," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 11(1), pages 29-42.
    14. Petzel, Todd E. & Monke, Eric A., 1979. "The Integration of the International Rice Market," Food Research Institute Studies, Stanford University, Food Research Institute, issue 03.
    15. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    16. Johansen, Soren & Juselius, Katarina, 1994. "Identification of the long-run and the short-run structure an application to the ISLM model," Journal of Econometrics, Elsevier, vol. 63(1), pages 7-36, July.
    17. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alam, Mohammad Jahangir & Buysse, Jeroen & McKenzie, Andrew M. & Wailes, Eric J. & Van Huylenbroeck, Guido, 2010. "Linkage between World and Domestic Prices of Rice under the regime of Agricultural Trade Liberalization in Bangladesh," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 58878, Australian Agricultural and Resource Economics Society.
    2. Mesbah Motamed & Kenneth A. Foster & Wallace E. Tyner, 2008. "Applying cointegration and error correction to measure trade linkages: maize prices in the United States and Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 29-39, July.

    More about this item

    Keywords

    Price linkages ; Wheat markets ; Rice markets ; Uruguay Round Agreement on Agriculture (URAA) ; Doha Developmental Round of the World Trade Organization (WTO) ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:mtiddp:76. 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: (). General contact details of provider: http://edirc.repec.org/data/ifprius.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.