 Evaluating the dynamic effect of oil and exchange rate on food prices: a fresh insight from OECD countries using panel ARDL estimationMaryum Sajid Raja, Orhan Şanli, Aslı Yenipazarli, Laeeq Janjua and Atteeq Razzak International Journal of Global Energy Issues, 2025, vol. 47, issue 1/2, 173-194 Abstract: The purpose of this study is to reveal the effect of oil prices and exchange rates on food prices in OECD countries. Food prices are usually determined by the exchange rate of the currency or either oil prices. Therefore, this paper questions the food price-exchange rate-oil prices trilemma by presenting empirical evidence from a panel of 38 OECD countries. ARDL bounds test and Granger causality methods were used for empirical analysis. Results suggest the increase in food prices in sample countries is associated with the exchange rate and energy prices. The exchange rate effect should be considered an important parameter in terms of energy costs and global food inflation. According to Dumitrescu-Hurlin panel causality tests results there is a strong bidirectional causality relationship between food prices and crude oil prices and exchange rates. These results indicate that exchange rates and crude oil prices are important variables that determine food prices. Keywords: energy; oil prices; food prices; exchange rate; OECD countries. (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:ids:ijgeni:v:47:y:2025:i:1/2:p:173-194 Access Statistics for this article More articles in International Journal of Global Energy Issues from Inderscience Enterprises Ltd |
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