-Rostami Navan, M., Shahbazi, K., Mohseni Zonouzi, S., asadpour, H. (2018). Investigating the Common Stochastic Trend of Corn and Soybean Meal Prices in Iran and Its Main Trading Partners. , 26(3), 211-238. doi: 10.30490/aead.2018.81017
Madadali -Rostami Navan; K. Shahbazi; S.J. Mohseni Zonouzi; Hasan asadpour. "Investigating the Common Stochastic Trend of Corn and Soybean Meal Prices in Iran and Its Main Trading Partners". , 26, 3, 2018, 211-238. doi: 10.30490/aead.2018.81017
-Rostami Navan, M., Shahbazi, K., Mohseni Zonouzi, S., asadpour, H. (2018). 'Investigating the Common Stochastic Trend of Corn and Soybean Meal Prices in Iran and Its Main Trading Partners', , 26(3), pp. 211-238. doi: 10.30490/aead.2018.81017
-Rostami Navan, M., Shahbazi, K., Mohseni Zonouzi, S., asadpour, H. Investigating the Common Stochastic Trend of Corn and Soybean Meal Prices in Iran and Its Main Trading Partners. , 2018; 26(3): 211-238. doi: 10.30490/aead.2018.81017

Investigating the Common Stochastic Trend of Corn and Soybean Meal Prices in Iran and Its Main Trading Partners

اقتصاد کشاورزی و توسعه
Article 9, Volume 26, Issue 3 - Serial Number 103, December 2018, Pages 211-238    PDF (310.68 K)
Document Type: Original Article
DOI: 10.30490/aead.2018.81017
Authors
Madadali -Rostami Navan1; K. Shahbazi* 2; S.J. Mohseni Zonouzi3; Hasan asadpour4
1Ph.D. Student of Economics, Urmia University, Urmia, Iran
2Associate Professor of Economics, Urmia University, Urmia, Iran
3Assistant Professor of Economics, Urmia University, Urmia, Iran
4Assistant Professor of Agricultural and Natural Resources Research Center of Mazandaran
Abstract
Dependence of life and its continuity on agricultural products for providing food and necessity to minimize price volatility and reassuring the price levels in the future have been almost always one of the essential objectives of agricultural product price policy. The aim of the present study was to investigate the common stochastic trend between selected agricultural product prices in Iran and its trading partners. For this purpose, monthly price data of corn and soybean meal for Iran and Iran's main trading partner countries over the period 2006-2016 were used. Gonzalo-Granger and Johansen methods were used to determine common stochastic trends. The results showed that there are two common stochastic trends for the price of corn and in this regard, Iran, Brazil, and Argentina could be decisive leaders. Also, there are three common stochastic trends for the price of soybean meal, but none of the countries will be the price policy leader. Accordingly, in order to avoid fluctuations in domestic prices, it is necessary that the conditions of global market were monitored continuously and also the sensitivity of domestic prices to international price fluctuations by adopting appropriate support measures, particularly in the area of trade policy was reduced. 
Keywords
Corn; Soybean Meal; Common Stochastic Trend; Gonzalo-Granger
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