| By: |
Bobokhonov, Abdulmajid;
Pokrivcak, Jan;
Rajcaniova, Miroslava |
| Abstract: |
This paper investigates the market integration between international and
domestic markets in the case of two-transition countries namely Tajikistan and
Uzbekistan. More specifically, our study aims to understand the extent and
speed of price transmission from international to local market. We have used
cointegration techniques to analyse the price transmission mechanism, such as
a vector error correction model (VEC). We have found strong cointegration
evidences between world market and domestic market of Tajikistan while no
cointegration was observed in case of Uzbekistan. Tajikistan has liberal trade
while Uzbekistan frequently used protectionist trade policy. |
| Keywords: |
price transmission, market integration, agricultural trade, food prices, Tajikistan and Uzbekistan, Demand and Price Analysis, Q1, |
| Date: |
2016–07 |
| URL: |
http://d.repec.org/n?u=RePEc:ags:aiea16:242306&r=cwa |