Price formation within Egypt's wheat tender market: Implications for Black Sea exporters

Maximilian Heigermoser, Linde Götz and Miranda Svanidze

EconStor Open Access Articles and Book Chapters, 2021, vol. 52, issue 5, 819-831

Abstract: Black Sea wheat exporters, led by Russia, dominate Egypt's wheat imports via a tender system. The tenders are managed by the GASC and their outcomes are communicated worldwide by financial news agencies. Building on a transaction-specific dataset on GASC tenders (2011 - 2019), results of our cointegration analysis find wheat export markets of Russia, France and the USA highly integrated with the GASC tender price. Estimates from the multivariate VECM indicate strong price interdependencies between the GASC tender price and Russian and French export prices, indicating fierce competition in the GASC tender market. Despite the high market share of wheat exporters in the Black Sea region and Russia in particular, tests on weak exogeneity suggest a leading role of the French wheat export price. We further find that leadership of US wheat prices is weak in the GASC tender market.

Keywords: Black Sea region; multivariate cointegration; spatial market integration; wheat (search for similar items in EconPapers)
JEL-codes: Q11 Q13 Q17 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/242478/1/H ... _price_formation.pdf (application/pdf)

Related works:
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:zbw:espost:242478

DOI: 10.1111/agec.12656

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().