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An Econometric Estimation of The World Price Leadership Impact on The Production and Export of Peanut of A.R.E التقدير القياسى لأثر القيادة السعرية العالمية على إنتاج وتصدير الفو

Article

Last updated: 04 Jan 2025

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Abstract

The study aims to evaluate the market integration in the main importing markets for the Egyptian shelled groundnut among other rivals. The study applied Vector Error-correction model (VECM) to test the co-integration existence between prices.Geographical Concentration investigation showed that Greece, Italy, Turkey, Tunisia, Jordon, Syria, and Netherlands are the main importers of Egyptian groundnut exports. The Augmented Dickey-Fuller test (1987-2017) revealed that all prices are stationary at the 1st differences, i.e. prices are integrated of order one P~I(1).Johansen co-integration test indicated that there is only one co-integration equation that confirm the long run relationship among rivals 'prices of shelled groundnut in each market.Error Correction Terms (ECTs) proved the unidirectional impact of other exporters 'prices on the Egyptian export price, and 6%, 22.8%, 70.6%, 75.3%, and 58.1% of the Egyptian price disequilibrium were be adjusted each year in Greece, Italy, Turkey, Jordon, and Netherlands markets respectively. Weak exogeneity test revealed that Argentine is considered a price leader in Greece, Italy, and Netherlands, and China is considered a leader price in Turkey and Jordon, while Tunisia is considered a regular price competitive. It is expected that the Egyptian export price will upward deviate 23%, 1%, and 31% from Argentinian price in Greece, Italy, and Netherlands markets respectively, and 13.7%, 27.6% from Chinese price in Jordon and Turkey respectively. It is recommended that Egyptian exporters should adopt low price policy not less than the leaders' prices as it covers the producer cost to allure importers to redirect to the Egyptian market.

DOI

10.21608/jaess.2020.112781

Keywords

Price leadership, Co-integration test, VECM, Weak exogeneity test

Authors

First Name

Elham

Last Name

Abdelaal

MiddleName

-

Affiliation

Socioeconomic Studies Department, Desert Research Center, Cairo, Egypt

Email

abdelaal_elham1971@yahoo.com

City

-

Orcid

0000000219319922

Volume

11

Article Issue

8

Related Issue

17304

Issue Date

2020-08-01

Receive Date

2020-07-10

Publish Date

2020-08-01

Page Start

497

Page End

503

Print ISSN

2090-3634

Online ISSN

2090-3715

Link

https://jaess.journals.ekb.eg/article_112781.html

Detail API

https://jaess.journals.ekb.eg/service?article_code=112781

Order

7

Type

Original Article

Type Code

884

Publication Type

Journal

Publication Title

Journal of Agricultural Economics and Social Sciences

Publication Link

https://jaess.journals.ekb.eg/

MainTitle

An Econometric Estimation of The World Price Leadership Impact on The Production and Export of Peanut of A.R.E التقدير القياسى لأثر القيادة السعرية العالمية على إنتاج وتصدير الفو

Details

Type

Article

Created At

22 Jan 2023