The Transmission of World Food Commodity Prices to China Markets: 2006-2008

Posted: 24 Sep 2009

See all articles by He Shuquan

He Shuquan

Shanghai University - Department of Economics

Date Written: September 24, 2009

Abstract

This paper examines the world price transmission to China for four food commodities (maize, rice, soybeans and wheat) during the recent food commodity prices spike (2006-2008). To understand the world price transmission to China for the food commodities, the author conduct econometric analysis using the error-correction model (ECM) with monthly data. Estimations suggest that the price transmissions are weak, and China’s prices of these four commodities are relative stable. With an analysis from the policy perspective, the author concludes that the weak transmission is attributed to China’s domestic agriculture support policies.

Keywords: Agricultural Policy, China, Food Commodity Prices

JEL Classification: C22, O24, Q11

Suggested Citation

Shuquan, He, The Transmission of World Food Commodity Prices to China Markets: 2006-2008 (September 24, 2009). Available at SSRN: https://ssrn.com/abstract=1477770

He Shuquan (Contact Author)

Shanghai University - Department of Economics ( email )

99#, Shangda Road, Baoshan District
Shanghai, 200444
China

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