Transmission of International Prices of Corn to Iranian Domestic Markets

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  • یعقوب زراعت کیش*1,
  • هانیه متقاعد2,
  1. گروه اقتصاد کشاورزی، واحد غلوم و تحقیقات، دانشگاه آزاد اسلامی، تهران، ایران
  2. Young Researchers and Elite Club, Science and Research Branch, Islamic Azad University, Tehran. Iran

Revised: 25-10-2015

Accepted: 31-12-2015

Published in Issue 01-09-2016

How to Cite

زراعت کیش ی., & متقاعد ه. (2016). Transmission of International Prices of Corn to Iranian Domestic Markets. International Journal of Agricultural Management and Development, 6(4), 363-367. https://oiccpress.com/ijamad/article/view/6831

PDF views: 105

Abstract

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.
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