The relationship between trade and price volatility in the Mexican and US maize markets
Sergio Rene Araujo-Enciso
Authors registered in the RePEc Author Service: Sergio René Araujo Enciso ()
No 122544, 123rd Seminar, February 23-24, 2012, Dublin, Ireland from European Association of Agricultural Economists
The supply of maize in the Mexican market depends to a large extent from the US imports which represent a large share of the domestic consumption. Furthermore imports exhibit a seasonal pattern, and peaks are often found close to low levels of domestic production and stocks. The present research suggests that there is a link between imports and prices volatility. Below a threshold value, imports and volatility are not related, but beyond the threshold it is volatility the variable driving imports. From the results one can argue that imports have served as a measure to stabilize prices when the domestic supply is scarce.
Keywords: Volatility; Maize; Imports; Mexico; Risk and Uncertainty; Q11; Q17 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa123:122544
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