Effects of Global Liquidity on Commodity and Food Prices

Ansgar Belke, Ingo G. Bordon and Ulrich Volz

World Development, 2013, vol. 44, issue C, 31-43

Abstract: This article investigates the relationship between global liquidity and commodity and food prices applying a global cointegrated vector-autoregressive model. We use different measures of global liquidity and various indices of commodity and food prices for the period 1980–2011. Our results support the hypothesis that there is a positive long-run relation between global liquidity and the development of food and commodity prices, and that food and commodity prices adjust significantly to this cointegrating relation. Global liquidity, in contrast, does not adjust, it drives the relationship.

Keywords: commodity prices; food prices; global liquidity; cointegration; CVAR analysis (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X12003038
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Effects of Global Liquidity on Commodity and Food Prices (2012)
Working Paper: Effects of Global Liquidity on Commodity and Food Prices (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:44:y:2013:i:c:p:31-43

DOI: 10.1016/j.worlddev.2012.12.009

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().