Price Asymmetry of Coffee Beans: Evidence from Vietnam

Thang Chien Mai, Shamim Shakur and Sue Cassells

No 260807, 2016 Conference, August 25-26, Nelson, New Zealand from New Zealand Agricultural and Resource Economics Society

Abstract: The research evaluates the price transmission between export and farmgate prices for Vietnam’s Robusta coffee. Our findings suggest that minor asymmetry price transmission exists for export prices in the long-run and for farm prices in the short-run when thresholds are considered. Besides, the daily speed of adjustment is so high as to lead one to conclude that the price transmission is symmetric. Some possible explanations include the low concentration of local exporters, Robusta’s low quality, and coffee oversupply. Given the recent downward trend in global coffee bean prices, this result also implies that liberalisation current policies are inadequate to ensuring coffee farmers’ welfare.

Keywords: Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Pages: 21
Date: 2016-08-25
New Economics Papers: this item is included in nep-agr, nep-int and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nzar16:260807

DOI: 10.22004/ag.econ.260807

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