Structural Breaks, the Export Enhancement Program and the Relationship between Canadian and US Hard Wheat Prices

Dawson, P.J.; Sanjuán, Ana I.

doi:10.1111/j.1477-9552.2006.00034.x

Cited by 15 publications

(10 citation statements)

References 40 publications

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“…Here, rejection of the null hypothesis that a Y 1 ¼ 0, non-rejection of the null hypothesis that a Y 2 ¼ 0 refers to the notion that Y 1;t is endogenous and Y 2;t is weakly exogenous (see Dawson and Sanjuan, 2005).…”

Section: Vecm Restrictions Testsmentioning

confidence: 99%

The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

Eryigit

Eryiğit

Selen

2012

Defence and Peace Economics

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In this study, we empirically investigate the long-run relationships between education-health expenditures, defence expenditures and economic growth in Turkey by using annual time-series data for the time period 1950-2005. To estimate these relationships, we use the cointegration method, which allows for the existence of structural breaks. The results show that there are two cointegrating vectors in the system with statistically significant structural breaks. According to the identified long-run equations, education and health expenditures affect economic growth positively, while defence expenditures have negative effects. In addition, the results show that there is a budgetary trade-off between education-health and defence expenditures.

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Section: Vecm Restrictions Testsmentioning

confidence: 99%

The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

Eryigit

Eryiğit

Selen

2012

Defence and Peace Economics

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“…In order to further test the break point, Johansen tests were run on two models, where one was fit with a dummy variable to account for the break and one without it, and then compare the results. Dawson, Sanjuan, and White (2006) and Dawson and Sanjuan (2006) have proven the validity of this method. The results, listed in Table 3, show that per our expectations, Johansen's procedure fails to detect cointegration without the break, whereas two cointegrating vectors were found with the break placed inside the model.…”

Section: Resultsmentioning

confidence: 85%

“…If structural breaks have been identified, dummy variables will be used to control for their effects (Dawson, Sanjuan, & White, 2006;Dawson & Sanjuan, 2006).…”

Section: Identification Of Structural Breakmentioning

confidence: 99%

Market Integration in the International Market of Soybeans: Are GM Soy and Non-GM Soy Markets Integrated?

Larre¹

2019

JAS

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This paper aims to study market integration in the international trade of soybeans from 1999 to 2019. The hypothesis is that the market remained integrated between genetically modified (GM) and non-GM soy, even after stringent regulations against GM soy in major importers starting in 1999. Using FOB prices from major exporters of GM soy (USA and Argentina) and non-GM soy (Brazil), I test for market integration with cointegration analysis and Granger causality tests. All tests show that the market between all three exporters remained integrated throughout the sample period. Furthermore, Granger causality tests show that USA remains the sole price leader. Short run elasticities for reactions to American price changes in Brazil and Argentina are 0.33 and 0.25, respectively. The results validate the Law of One Price and inform policy decisions and forecasts efforts in this valuable commodity.Moreover, the EU, who collectively make up the second largest importer, has banned trade of GM soy varieties, starting in 1999 with a moratorium on trade of GM food, fixed in place by stringent new regulations in 2003, and then formalized in bans across numerous member countries. Also China, currently the biggest importer by a large margin, has placed stringent regulations on GM soy trade, including prohibition of direct consumption, all imports are exclusively for industrial use, and long delays in approving individual GM varieties. Because each new GM event requires each separate country's approval before it can be freely traded, this causes further trade disruptions as specific new events are approved in exporting countries but not yet in the importers.

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“…where q is the number of divided sample periods, Dj,t-I = 1 if t = 1}-1 + i (forj = 2, .., q and i = 1, ..., k) and 0 otherwise, and E, = I if 1}-1 + k + 1 t~1} and 0 otherwise [see Dawson and Sanjuan (2006) for a detailed application] .…”

Section: Tests For Unit Roots Under Structural Changementioning

confidence: 99%

Price Dynamics in the North American Wheat Market

Baek

Koo

2006

Agric. resour. econ. rev.

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Perron's test, Johansen cointegration analysis, and a vector error-correction (VEC) model are used to identify structural change, as well as to examine price dynamics in the U. S. and Canadian hard red spring (HRS) and durum wheat markets. It is found that, due to the U. S. Export Enhancement Program (EEP), price instability experienced in June 1986 has resulted in structural changes for Canadian HRS and durum prices. We also find that Canadian prices have significant effects on the determination of the U. S. prices in the North American wheat market.

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Structural Breaks, the Export Enhancement Program and the Relationship between Canadian and US Hard Wheat Prices

Cited by 15 publications

References 40 publications

The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

Market Integration in the International Market of Soybeans: Are GM Soy and Non-GM Soy Markets Integrated?

Price Dynamics in the North American Wheat Market

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