Analysis of Price Transmission and Relationship between Import and Domestic Price of Sugar in Iran

Authors

Abstract

Abstract
Sugar is one of the strategic products that for different reasons in the past years have been numerous crises. One of the most important issues in domestic sugar market is affected domestic sugar price by the fluctuation of import and world sugar price. Therefore, the purpose of this study is survey of relationship between domestic, import and world price using VAR model during 2002-2011.The results indicated that price fluctuation is started from world price and it affects on import prices after two months. Then import price affects on domestic prices after one month.

JEL Classification: Q18, Q13

Keywords:
Sugar, Vector Auto Regression (VAR), World Price, Import Price, Domestic Price