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Transmisión De Precios Para Los Mercados Del Maíz Y Arroz En América Latina, Laure C. Dutoit, Karla Hernández, Cristóbal Urrutia

Laure C Dutoit

The goal of this paper is to analyze price transmission from the international market towards the domestic one, in the case of rice and maize. The countries studied are El Salvador, Honduras, Panama, Guatemala, Nicaragua and Costa Rica in Center America and Chile and Brazil in South America. The cointegration method is applied to determine if price transmission exists. Furthermore, error correction models are used to estimate the speed of adjustment to deviations from the long-run relationship between the domestic and international markets. Strong price transmission was found in Chile in the maize market and Brasil in the rice market. …