Market institutions and price relationships: The case of coffee in the Ethiopian Commodity Exchange

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cg.authorship.typesCGIAR single centreen
cg.authorship.typesCGIAR and developing country instituteen
cg.contributor.donorBill & Melinda Gates Foundationen
cg.contributor.donorUnited States Agency for International Developmenten
cg.coverage.countryEthiopia
cg.coverage.iso3166-alpha2ET
cg.coverage.regionEastern Africa
cg.coverage.regionAfrica
cg.coverage.regionSub-Saharan Africa
cg.creator.identifierManuel Hernandez: 0000-0003-4754-8471
cg.creator.identifierShahidur Rashid: 0000-0001-6719-2201
cg.creator.identifierSolomon Lemma: 0000-0003-4003-1509
cg.identifier.doihttps://doi.org/10.1093/ajae/aaw101en
cg.identifier.projectIFPRI - Markets, Trade, and Institutions Division
cg.identifier.projectIFPRI - Development Strategy and Governance Division
cg.identifier.publicationRankA
cg.isijournalISI Journalen
cg.issn0002-9092en
cg.issue3en
cg.journalAmerican Journal of Agricultural Economicsen
cg.reviewStatusPeer Reviewen
cg.volume99en
dc.contributor.authorHernandez, Manuel A.en
dc.contributor.authorRashid, Shahiduren
dc.contributor.authorLemma, Solomonen
dc.contributor.authorKuma, Tadesseen
dc.date.accessioned2024-06-21T09:23:38Zen
dc.date.available2024-06-21T09:23:38Zen
dc.identifier.urihttps://hdl.handle.net/10568/147994
dc.titleMarket institutions and price relationships: The case of coffee in the Ethiopian Commodity Exchangeen
dcterms.abstractWhile the Ethiopian Commodity Exchange (ECX) is widely considered a successful market institution, very little rigorous empirical investigation has been done on it. This paper contributes to filling this knowledge gap. Using a unique set of spatially disaggregated prices for five different coffee varieties, we examine how the ECX has influenced the dynamics of international and domestic prices for coffee, the largest traded commodity in terms of trade value on the exchange floor. We follow a multivariate Generalized Autoregressive Conditional Heteroscedasticity (GARCH) approach to assess the extent of market interdependence (conditional correlations) and volatility transmission. We also evaluate structural changes in price dynamics over time. Our results suggest that, contrary to popular media stories, the ECX's success in strengthening coffee price relationships has been limited. We discuss the underlying reasons and implications of this finding.en
dcterms.bibliographicCitationHernandez, Manuel A.; Rashid, Shahidur; Lemma, Solomon; and Kuma, Tadesse. 2017. Market institutions and price relationships: The case of coffee in the Ethiopian Commodity Exchange. American Journal of Agricultural Economics 99(3): 683-704. https://doi.org/10.1093/ajae/aaw101en
dcterms.extentpp. 683-704en
dcterms.issued2017
dcterms.languageen
dcterms.licenseCopyrighted; all rights reserved
dcterms.publisherWileyen
dcterms.relationhttps://hdl.handle.net/10568/149640en
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll5/id/5763en
dcterms.subjectvolatilityen
dcterms.subjectmarketsen
dcterms.subjecttradeen
dcterms.subjectcoffeeen
dcterms.subjectcommodity marketsen
dcterms.typeJournal Article

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