Next Article in Journal
Evaluation of the Effects of Allelopathic Aqueous Plant Extracts, as Potential Preparations for Seed Dressing, on the Modulation of Cauliflower Seed Germination
Next Article in Special Issue
Farmers’ Willingness to Pay for Services to Ensure Sustainable Agricultural Income in the GAP-Harran Plain, Şanlıurfa, Turkey
Previous Article in Journal
Sustainable Fertilizer Strategies for Vaccinium corymbosum x V. angustifolium under Abandoned Peatland Conditions
Previous Article in Special Issue
Assessing the Productivity of Common Bean in Intercrop with Maize across Agro-Ecological Zones of Smallholder Farms in the Northern Highlands of Tanzania
Open AccessArticle

The Determinants of Risk Transmission between Oil and Agricultural Prices: An IPVAR Approach

Business and Economics Research Group, Ho Chi Minh City Open University, District 3, Ho Chi Minh City 7000, Vietnam
*
Author to whom correspondence should be addressed.
Agriculture 2020, 10(4), 120; https://doi.org/10.3390/agriculture10040120
Received: 19 February 2020 / Revised: 4 April 2020 / Accepted: 4 April 2020 / Published: 10 April 2020
(This article belongs to the Special Issue Productivity, Efficiency, and Sustainability in Agriculture)
Previous empirical studies have generally considered biofuel as a main factor in changes in the relationship between oil and agricultural prices because these changes happened after U.S. biofuel policies were implemented. However, it has been argued that other economic factors can trigger the correlation of these two markets. This study was conducted to examine the transmission mechanisms that influence the relationship between oil and agricultural prices. This paper used the interacted panel vector autoregressive framework, which allowed us to investigate the effect of biofuel production under different regimes of exchange rates and global economic activities. The responses of agricultural prices to oil prices at different levels of biofuel production, global economic activity, and exchange rates were examined in this paper. Data on prices for 10 agricultural commodities—barley, beans, corn, cotton, oats, rice, sorghum, soybean, sunflower, and wheat—from January 2000 to May 2019, were used in this study. Our findings indicate that oil prices can affect agricultural prices through biofuel and exchange rates. Moreover, the effect of biofuel depends on the level of global economic activity and exchange rates. We offer some policy implications on the basis of our findings in this study. View Full-Text
Keywords: agricultural prices; biofuel; exchange rate; IPVAR agricultural prices; biofuel; exchange rate; IPVAR
Show Figures

Figure 1

MDPI and ACS Style

Vu, T.N.; Ho, C.M.; Nguyen, T.C.; Vo, D.H. The Determinants of Risk Transmission between Oil and Agricultural Prices: An IPVAR Approach. Agriculture 2020, 10, 120.

Show more citation formats Show less citations formats
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
Search more from Scilit
 
Search
Back to TopTop