Transmission of International Prices of Corn to Iranian Domestic Markets

International Journal of Agricultural Management and Development

مقاله 13، دوره 6، شماره 3، آذر 2016، صفحه 363-367   

نوع مقاله: Research Article

نویسندگان

Yaghoub Zeraatkish^{* 1}؛ Haniyeh Yousefi Moteghaed²

¹Department of agricultural economic,science and research branch,islamic azad university,Tehran,Iran

²Young Researchers and Elite Club, Science and Research Branch, Islamic Azad University, Tehran. Iran

چکیده

Market volatility remains one of the most important research fields in agricultural economics.Interestingly, price transmission mechanism seems to be symmetric in sectors that are likely to be of high political power.This paper analyzes the price transmission effects from international markets to domestic markets for corn in Iran. For this purpose, we estimate the elasticity of substitution between imported and domestically produced goods. Annual data (1996-2012) are analyzed with an econometric framework based on the Maximum Entropy. The result shows that there is a substitution relationship between imported and domestic corn and in the end; domestic prices areaffected from world price more than the short run.

کلیدواژه‌ها

Price transmission؛ Maximum Entropy (ME)؛ Armington elasticity

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