Spatial market efficiency of grain markets in Russia and global food security: A comparison with the USA

Miranda Svanidze and Linde Götz ()

No 285196, IAMO Discussion Papers from Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: Using a threshold vector error correction model approach we find the wheat market of Russia segmented, with the primary grain export region poorly integrated into the domestic market. Results also indicate that trade costs are high, hindering spatial market efficiency of wheat markets in Russia. In addition, our study demonstrates that, by including the USA as benchmark country, a comparative approach enables a more comprehensive assessment of the spatial market efficiency of the wheat market in Russia. The study shows that the distinction between grain production and export potential, especially for markets located in peripheral regions of Russia, is essential to correctly identify Russia's future role for global food security. As a general conclusion, besides raising agricultural production potential it is also essential to strengthen spatial market efficiency in the agricultural sector to boost agricultural export potential and to increase global food security.

Keywords: Crop Production/Industries; Food Security and Poverty; International Relations/Trade (search for similar items in EconPapers)
Pages: 39
Date: 2019
New Economics Papers: this item is included in nep-agr, nep-cis, nep-int and nep-tra
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iamodp:285196

DOI: 10.22004/ag.econ.285196

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