A threshold cointegration analysis of asymmetric adjustments in the Ghanaian maize markets

Acquah Henry De-graft
Additional contact information
Acquah Henry De-graft: University of Cape Coast

Russian Journal of Agricultural and Socio-Economic Sciences, 2012, vol. 8, issue 8, 21-25

Abstract: This paper analyzes the long-run equilibrium relationship between retail and wholesale Ghanaian maize prices with cointegration test assuming asymmetric adjustment. Using the Enders-Siklos asymmetric cointegration tests, it is found that the retail and wholesale prices are cointegrated with threshold adjustment. Furthermore, the adjustment process is asymmetric when the retail and wholesale prices adjust to achieve the long-term equilibrium. Finally, there is faster convergence for negative deviations from long-term equilibrium than for positive deviations. These results imply that price increases tend to persist whereas decreases tend to revert quickly towards equilibrium.

Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://cyberleninka.ru/article/n/a-threshold-coint ... anaian-maize-markets

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:scn:031261:14030277

Access Statistics for this article

More articles in Russian Journal of Agricultural and Socio-Economic Sciences from CyberLeninka, Редакция журнала Russian Journal of Agricultural and Socio-Economic Sciences
Bibliographic data for series maintained by CyberLeninka ().