 The dynamic linkages between food prices and oil prices. Does asymmetry matter?Achillefs Karakotsios, Constantinos Katrakilidis and Nikolaos Kroupis The Journal of Economic Asymmetries, 2021, vol. 23, issue C Abstract: Crude oil prices are thought to be causally related to global food prices. The present paper examines the short and long-run dynamic linkages between crude oil prices and world food prices, using monthly data for the period January 2000–December 2015. The relationship between the two series is investigated in both the linear and asymmetric framework accounting for the presence of structural breaks as well as for possible asymmetries. In the linear framework, the findings support a unidirectional causal relationship running from oil to food prices. However, in the asymmetric framework, there is evidence of long-run feedback effects. This study extends the literature on the global relationship between food and oil prices, accounting for possible asymmetric causal effects. The obtained evidence could be valuable to policy designation for both the food and energy industry. Keywords: Crude oil prices; Food prices; Cointegration; Structural breaks; Asymmetric ARDL (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:23:y:2021:i:c:s1703494921000086 DOI: 10.1016/j.jeca.2021.e00203 Access Statistics for this article The Journal of Economic Asymmetries is currently edited by A.G. Malliaris More articles in The Journal of Economic Asymmetries from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.