THE EFFECTS OF SWINGS IN GLOBAL WHEAT PRICES ON THE DOMESTIC MARKETS IN AFGHANISTAN
Journal Title: International Journal of Food and Agricultural Economics - Year 2016, Vol 4, Issue 4
Abstract
The recent shocks in global prices of cereals and the spillover effects of trade restrictive policies adversely affected domestic markets, particularly in the net food importing countries such as Afghanistan. This paper investigates the effects of 2007–2008 spikes in global wheat prices on the dynamics of price transmission and long-run equilibrium relationship between global and domestic wheat markets. The findings indicate that domestic and global wheat markets may be cointegrated in Regime-I (pre-break), Regime-II (post-break) and the overall sample period. Moreover, the elasticity of price transmission and speed of adjustment towards the long-run equilibrium are substantially different between the two regimes, i.e., they appear to be larger in Regime-I as compared to Regime-II. Similarly, the effect of a shock in global wheat prices on domestic wheat markets might be long-lasting in Regime-I but transitory in Regime-II. This research underlines the need for mitigating the adverse effect of spikes in global wheat prices on domestic wheat markets in the context of a landlocked net food importing country.
Authors and Affiliations
Najibullah Hassanzoy, Shoichi Ito, Hiroshi Isoda, Yuichiro Amekawa
STRUCTURAL BREAK IN RICE PRODUCTION : A STUDY WITH ASIAN COUNTRIES
As rice is the most important staple diet in Asia because of its high concentration of production and consumption in the region it is key to global food security. In this backdrop, understanding the stable growth of rice...
Producers’ Perception of Geographical Indications as a Product Diversification Tool for Agrifood Products in Semi-Arid Regions of Kenya
The study assessed producers’ awareness and perceptions of territorial-based qualities and the economic potential of two potential origin-based geographical indications in two semi-arid counties in Kenya. Protection of t...
LONG-TERM CHOICES FOR QUINOA FARMERS IN PUNO, PERU. A REAL OPTIONS STUDY
The aim of this article is to assess the optimal choices of a smallholder quinoa farmer in the Puno Peru, in terms of their decision if and when to undertake certain investments that are expected to increase quinoa yield...
FOOD ENTREPRENEUR SUSTAINABLE ORIENTATION AND FIRM PRACTICES
This exploratory research examines the relationship between food entrepreneur sustainable orientation, mindset and firm sustainable practices in a mixed methods format. In particular we seek to address if entrepreneur be...
MARKET DECISION PREFERENCES OF DAIRY FARMERS TOWARDS TRADITIONAL AND MODERN CHANNELS OF MILK MARKETING: AN EVIDENCE FROM PUNJAB PROVINCE OF PAKISTAN
This study was specifically conducted in the four districts of Punjab province of Pakistan. The principal objective was to identify major explanatory variables that might influence dairy farmers’ market participation dec...