Next Article in Journal
Conceptualizing Personhood for Sustainability: A Buddhist Virtue Ethics Perspective
Next Article in Special Issue
Sustainable Consumer Behavior and Food Marketing
Previous Article in Journal
Review of Supply Chain Based Embodied Carbon Estimating Method: A Case Study Based Analysis
Previous Article in Special Issue
To Purchase or Not to Purchase? Drivers of Consumers’ Preferences for Animal Welfare in Their Meat Choice
Article

Empirical Detection and Quantification of Price Transmission in Endogenously Unstable Markets: The Case of the Global–Domestic Coffee Supply Chain in Papua New Guinea

1
Department of Agricultural and Biological Engineering, University of Florida, Gainesville, FL 32611, USA
2
UNE Business School, University of New England, Armidale, NSW 2350, Australia
3
Coffee Industry Corporation Ltd., Goroka 441, Eastern Highlands, Papua New Guinea
4
Dipartimento di Scienze Agrarie, Alma Mater Studiorum-Università di Bologna, Viale Giuseppe Fanin, 40127 Bologna, Italy
*
Author to whom correspondence should be addressed.
Academic Editors: Petra Riefler, Karin Schanes, Oliver Meixner and Jacopo Bacenetti
Sustainability 2021, 13(16), 9172; https://doi.org/10.3390/su13169172
Received: 22 June 2021 / Revised: 6 August 2021 / Accepted: 11 August 2021 / Published: 16 August 2021
(This article belongs to the Special Issue Sustainable Consumer Behavior and Food Marketing)
Price transmission through global–domestic agricultural supply chains is a fundamental indicator of domestic market efficiency and producer welfare. Conventional price-transmission econometrics test for a theory-based spatial-arbitrage restriction that long-run equilibrium prices in spatially distinct markets differ by no more than transaction costs. The conventional approach is ill-equipped to test for price transmission when endogenously unstable markets do not equilibrate due to systematic arbitrage-frustrating frictions including financial and institutional transaction costs and biophysical constraints. We propose a novel empirical framework using price data to test for market stability and price transmission along international-domestic supply chains incorporating nonlinear time series analysis and recently emerging causal-detection methods from empirical nonlinear dynamics. We apply the framework to map-out and quantify price transmission through the global-exporter–processor–producer coffee supply chain in Papua, New Guinea. We find empirical evidence of upstream price transmission from the global market to domestic exporters and processors, but not through to producers. View Full-Text
Keywords: market instability; nonlinear empirical dynamics market instability; nonlinear empirical dynamics
Show Figures

Figure 1

MDPI and ACS Style

Huffaker, R.; Griffith, G.; Dambui, C.; Canavari, M. Empirical Detection and Quantification of Price Transmission in Endogenously Unstable Markets: The Case of the Global–Domestic Coffee Supply Chain in Papua New Guinea. Sustainability 2021, 13, 9172. https://doi.org/10.3390/su13169172

AMA Style

Huffaker R, Griffith G, Dambui C, Canavari M. Empirical Detection and Quantification of Price Transmission in Endogenously Unstable Markets: The Case of the Global–Domestic Coffee Supply Chain in Papua New Guinea. Sustainability. 2021; 13(16):9172. https://doi.org/10.3390/su13169172

Chicago/Turabian Style

Huffaker, Ray, Garry Griffith, Charles Dambui, and Maurizio Canavari. 2021. "Empirical Detection and Quantification of Price Transmission in Endogenously Unstable Markets: The Case of the Global–Domestic Coffee Supply Chain in Papua New Guinea" Sustainability 13, no. 16: 9172. https://doi.org/10.3390/su13169172

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop