scholarly journals Price transmission between international and domestic prices in the Brazilian citrus sector

2021 ◽  
pp. 1-18
Author(s):  
Mohammad Jahangir Alam ◽  
Miguel I. Gómez ◽  
Marco Tulio Ospina Patino ◽  
Milla Reis de Alcântara ◽  
Ismat Ara Begum
Keyword(s):  
Value Chain ◽  
Orange Juice ◽  
Price Transmission ◽  
Asymmetric Adjustment ◽  
Citrus Industry ◽  
Long Run ◽  
International Prices ◽  
Domestic Prices ◽  
And Performance ◽  
Marketing Margins

The orange juice chain is a representative sector of the Brazilian agribusiness sector and its performance warrants analysis to identify strategies to enhance its competitiveness. Analysis of asymmetry in food value chain is important because it provides valuable information on market structure and performance. We use an asymmetric threshold error correction model to examine threshold, short- and long-run asymmetries on price transmission from international to domestic prices of oranges in Brazil. We use monthly data on international frozen concentrated orange juice prices and domestic prices of oranges in Brazil for the period from January 1996 to December 2020 in the analysis. We find evidence of threshold and asymmetries in short- and long-run price transmission and asymmetric adjustment towards a long-run relationship between international and domestic orange prices in Brazil. Decreases in international prices that lead to reductions in marketing margins are passed on quickly to domestic prices, but this is not the case for increases in international prices. We discuss implications for the Brazilian citrus industry.

scholarly journals Asymmetric Price Transmission of World Prices to Kenyan Tea Market

2020 ◽  
Author(s):  
Vincent Ngeno
Keyword(s):  
Price Transmission ◽  
Asymmetric Adjustment ◽  
Close Link ◽  
Empirical Results ◽  
Current Period ◽  
Long Run ◽  
Asymmetric Price Transmission ◽  
The World ◽  
Domestic Prices ◽  
Short Run

Abstract The use of asymmetrical threshold cointegration test is adopted in this study to investigate whether any significant relationship or asymmetric adjustment exists in transmission of prices between the world tea market and domestic prices in Kenya. The empirical results obtained are as follows. First, we verify a close link between the Kenya’s tea price and its international counterparts under the current period of market liberalization. Second, empirical results demonstrate that in both long run and short run, the price transmission between world tea market and Kenyan domestic market are nonlinear and asymmetric, suggesting long run and short run dynamic inefficiencies and presence of transaction costs.JEL classification: C32, Q13, Q17

scholarly journals Asimetrías en la transmisión de precios en el sector del tomate en España

2011 ◽  
Vol 8 (1) ◽  
pp. 57 ◽  
Author(s):  
Monia Ben Kaabia ◽  
José María Gil Roig
Keyword(s):  
Price Transmission ◽  
Multivariate Approach ◽  
Threshold Autoregressive ◽  
Threshold Autoregressive Model ◽  
Price Adjustments ◽  
Long Run ◽  
Short Run ◽  
Retail Prices ◽  
Main Determinants ◽  
Marketing Margins

This paper aims to investigate the non-linear adjustments between farm and retail prices in the tomato sector in Spain. The methodology used is based on the multivariate approach to specify and estimate a Threshold Autoregressive Model. The results indicate that, in the long run, price transmission is perfect. In the short-run, price adjustments between the farm and the retail levels are asymmetric. Retailers always benefit (in terms of increasing marketing margins) from positive and negative shocks affecting supply or demand conditions. Moreover, marketing margins have been found to be main determinants of inflation in the Spanish tomato sector.

scholarly journals Vertical price transmission in Swiss dairy and cheese value chains

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Judith Hillen
Keyword(s):  
Value Chain ◽  
Price Transmission ◽  
Value Chains ◽  
Vector Autoregressive ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Vector Error Correction Models ◽  
On Farm ◽  
Price Relationships

AbstractIn Switzerland, there are separated value chains for dairy and cheese products, which differ in terms of industry concentration, value chain governance, and product characteristics. We analyze how milk prices are passed on along these different value chains. Using detailed price data on farm gate, wholesale, export, and retail levels, we apply asymmetric vector autoregressive and vector error correction models to study vertical price transmission in Swiss dairy and cheese chains. Contrary to most existing literature, we find almost no long-run price relationships and no significant asymmetries between the different stages and products and discuss the potential reasons.

scholarly journals Transmission of global wheat prices to domestic markets in Kenya: A cointegration approach

2021 ◽  
Vol 16 (1) ◽  
pp. 80-93
Author(s):  
Jonathan Makau Nzuma ◽  
◽  
Patrick Kipruto Kirui ◽  
Keyword(s):  
Price Transmission ◽  
Infrastructure Development ◽  
Producer Price ◽  
Domestic Markets ◽  
Long Run ◽  
Domestic Prices ◽  
International Price ◽  
Pass Through ◽  
Liberal Trade ◽  
Wheat Price

This paper evaluates the extent to which changes in international wheat prices are transmitted to domestic markets in Kenya using an error correction model (ECM) that employs monthly producer price data for the period 2002 to 2020. Domestic wheat markets in Kenya were found to be strongly integrated while, international wheat markets were cointegrated with domestic prices at the port of Mombasa. The long-run elasticity of price transmission was estimated at 0.91, which implies that 91% of the changes in international wheat prices are transmitted to domestic markets in Kenya. The speed of adjustment was estimated at -0.069, which implies that it takes about 14 months for the changes in the international wheat price to be fully transmitted to the Kenyan domestic market. Wheat farmers in Kenya seem to be insulated from international price shocks given the long period of time it takes for domestic markets to adjust to international price changes. Even though not explicitly analysed, government border policies, market and infrastructure impediments seem to be underlying causes of the incomplete price pass-through, along with the low speeds of adjustments. Our analysis suggests that the main constraint to a complete pass-through is the existence of price-setting power at the producer level of the wheat market in Kenya. Investments in infrastructure development and the promotion of liberal trade policies can improve the transmission of international wheat price signals to domestic markets in Kenya.

scholarly journals Pricing Efficiency in Agricultural Markets: Evidence from the Sugarcane Sector in Laos

2020 ◽  
pp. 60-68
Author(s):  
Xomphouthep Phimthong ◽  
Yohana James Mgale ◽  
Ray Munachoonga Sikamwaya ◽  
Zhao Guiyu
Keyword(s):  
Price Transmission ◽  
Adjustment Process ◽  
Asymmetric Adjustment ◽  
Causality Test ◽  
Export Markets ◽  
Export Prices ◽  
Long Run ◽  
Causality Tests ◽  
Johansen Cointegration Test ◽  
The Relationship

This study aims to analyse the relationship between farm gate prices and export prices in the sugarcane sector in Laos. The Johansen cointegration test, Granger-causality test, and the Error Correction Model (ECM) were used to investigate the causality and asymmetry of price transmission between the two market levels. The coefficient of variation values shows that farm gate prices were more volatile than prices at the exporter level. Granger’s causality tests show two-way causality between farm and export markets. Further, estimates of the price adjustment process suggest an asymmetric adjustment between producer and exporter prices, in short and long-run. This implies that there is a non-competitive market structure. It is therefore recommended that policies be put in place to ensure the efficient marketing of sugarcane in Laos.

scholarly journals Analisis Efisiensi Pemasaran Jagung di Provinsi Gorontalo

2021 ◽  
Vol 9 (1) ◽  
pp. 55-66
Author(s):  
Ulfira Ashari ◽  
Syamsir Syamsir
Keyword(s):  
Market Integration ◽  
Sampling Technique ◽  
Marketing Channels ◽  
Price Transmission ◽  
Snowball Sampling ◽  
Correction Model ◽  
Long Run ◽  
Marketing Margins ◽  
Share Value ◽  
Snowball Sampling Technique

Price fluctuations at the producer and consumer levels determine the performance of the maize market in Gorontalo Province. This will affect the decisions and ability of the corn marketing agencies involved in responding to price changes. The slow response of marketing agencies to changes in maize prices indicates inefficient market conditions in terms of prices. In addition, differences in market power between marketing agencies indicate inefficiencies in marketing maize from an operational perspective. Therefore, this research was conducted with the aim of 1) analyzing market integration and transmission of maize prices between producers and consumers, 2) analyzing the distribution of marketing margins in the maize marketing channels in Gorontalo Province. The research data used is in the form of weekly price data at the producer and consumer levels for 148 weeks, from March 2016 to March 2019 and added data from direct interviews with the marketing actors involved, namely farmers as many as 30 people, while sampling of traders was carried out by snowball sampling technique. Data analysis used the Asymmetric Error Correction Model (AECM), marketing margin and farmer share for each channel. The results showed that the transmission of maize prices at the producer and consumer level is symmetrical in the long run indicating market integration. The smallest marketing margin and the largest farmer share are in Channel III, where marketing is done directly to an exporter. Corn marketing in Gorontalo Province shows price transmission and market integration as well as high farmer share value in each channel, so it can be concluded that marketing is efficient.

scholarly journals Cross-section instability in financial markets: impatience, extrapolation, and switching

2021 ◽  
Author(s):  
Roberto Dieci ◽  
Xue-Zhong He
Keyword(s):  
Financial Markets ◽  
Cross Section ◽  
Asset Price ◽  
Asset Market ◽  
Long Run ◽  
Short Run ◽  
And Performance ◽  
Equilibrium Market ◽  
High Degree ◽  
Fundamental Price

AbstractThis paper presents a stylized model of interaction among boundedly rational heterogeneous agents in a multi-asset financial market to examine how agents’ impatience, extrapolation, and switching behaviors can affect cross-section market stability. Besides extrapolation and performance based switching between fundamental and extrapolative trading documented in single asset market, we show that a high degree of ‘impatience’ of agents who are ready to switch to more profitable trading strategy in the short run provides a further cross-section destabilizing mechanism. Though the ‘fundamental’ steady-state values, which reflect the standard present-value of the dividends, represent an unbiased equilibrium market outcome in the long run (to a certain extent), the price deviation from the fundamental price in one asset can spill-over to other assets, resulting in cross-section instability. Based on a (Neimark–Sacker) bifurcation analysis, we provide explicit conditions on how agents’ impatience, extrapolation, and switching can destabilize the market and result in a variety of short and long-run patterns for the cross-section asset price dynamics.

The reflexive turn in key account management

2014 ◽  
Vol 48 (11/12) ◽  
pp. 2071-2104 ◽  
Author(s):  
Markus Vanharanta ◽  
Alan J.P. Gilchrist ◽  
Andrew D. Pressey ◽  
Peter Lenney
Keyword(s):  
Empirical Studies ◽  
Negative Relationship ◽  
Success Rates ◽  
Key Account Management ◽  
Content Type ◽  
Account Management ◽  
Long Run ◽  
Key Account ◽  
And Performance ◽  
The Uk

Purpose – This study aims to address how and why do formal key account management (KAM) programmes hinder effective KAM management, and how can the problems of formalization in KAM be overcome. Recent empirical studies have reported an unexpected negative relationship between KAM formalization and performance. Design/methodology/approach – An 18-month (340 days) ethnographic investigation was undertaken in the UK-based subsidiary of a major US sports goods manufacturer. This ethnographic evidence was triangulated with 113 in-depth interviews. Findings – This study identifies how and why managerial reflexivity allows a more effectively combining of formal and post-bureaucratic KAM practices. While formal KAM programmes provide a means to initiate, implement and control KAM, they have an unintended consequence of increasing organizational bureaucracy, which may in the long-run hinder the KAM effectiveness. Heightened reflexivity, including “wayfinding”, is identified as a means to overcome many of these challenges, allowing for reflexively combining formal with post-bureaucratic KAM practices. Research limitations/implications – The thesis of this paper starts a new line of reflexive KAM research, which draws theoretical influences from the post-bureaucratic turn in management studies. Practical implications – This study seeks to increase KAM implementation success rates and long-term effectiveness of KAM by conceptualizing the new possibilities offered by reflexive KAM. This study demonstrates how reflexive skills (conceptualized as “KAM wayfinding”) can be deployed during KAM implementation and for its continual improvement. Further, the study identifies how KAM programmes can be used to train organizational learning regarding KAM. Furthermore, this study identifies how and why post-bureaucratic KAM can offer additional benefits after an organization has learned key KAM capabilities. Originality/value – A new line of enquiry is identified: the reflexive-turn in KAM. This theoretical position allows us to identify existing weakness in the extant KAM literature, and to show a practical means to improve the effectiveness of KAM. This concerns, in particular, the importance of managerial reflexivity and KAM wayfinding as a means to balance the strengths and weaknesses of formal and post-bureaucratic KAM.

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