Price Transmission from International to Domestic Markets
2016
Greb, Friederike | Jamora, Nelissa | Mengel, Carolin | Von Cramon-Taubadel, Stephan | Wurriehausen, Nadine
This study aims to improve our understanding of the extent and speed of the transmission ofinternational cereal prices to local markets in developing countries. We undertake three types ofanalysis. First, we extract a sample of estimated measures of cereal price transmission (PT) from a comprehensive literature sample of published papers and studies. Second, we use the FAO’s GIEWS dataset to estimate our own sample of measures ofcereal PT. In a subsequent meta-regression analysis we measure how much of thevariation in each of the resulting samples of PT estimates (the literature sample andthe GIEWS sample) can be explained by factors that might be expected to influencethe strength of PT such as whether the country in question is landlocked. Third, we present the results of simple, non-parametric analysis of price transmissionusing the GIEWS data. This analysis measures the share of periods in which domesticand international prices have jointly increased or decreased.
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