Article 2022 · 2 citations

THE RELATIONSHIP BETWEEN AGRICULTURAL RAW MATERIALS AND OIL PRICE: AN EMPIRICAL ANALYSIS

Abstract

The motivation of this study is to investigate the relationship between the price of agricultural raw materials and the real exchange rate of the USA and the price of crude oil. For this purpose, annual data from 1990 to 2020 were used. In the study, the cointegration relationship and the elasticity coefficients of the variables were estimated with the help of ARDL bounds test. In addition, the causality relationship was determined with the help of the Granger test. According to the results obtained, it was concluded that there is a cointegration relationship in the models established for agricultural raw materials. In addition, the elasticity coefficient of oil price was found to be positive. According to the Granger causality analysis results, a oneway causality relationship from oil price to agricultural raw materials was determined. We present some policy implications based on our findings in this study.

Keywords

Agricultural Raw Materials Oil Price Real Effective Exchange Rate ARDL Bounds Test VECM Causality Test COMMODITY PRICES WORLD OIL CRUDE-OIL EXCHANGE-RATES FOOD COINTEGRATION LINKAGES ENERGY DEMAND DOLLAR

WoS Categories

Agricultural Economics & Policy

Sustainable Development Goals

Decent Work and Economic Growth

Citation

Journal: EKONOMIKA POLJOPRIVREDA-ECONOMICS OF AGRICULTURE
Year: 2022
Volume: 69
Issue: 4
Pages: 975-989
ISSN: 0352-3462
DOI: 10.5937/ekoPolj2204975G
WoS UID: WOS:000919727200002

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