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JOURNAL OF INTERNATIONAL STUDIES


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ISSN: 2306-3483 (Online), 2071-8330 (Print)



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An empirical study on the relationship between corn futures prices of China and the United States

Vol. 8, No 3, 2015

Qiu Mengyuan

 

Ocean University of China

 

 China

 

qiumengyuan91@hotmail.com

An empirical study on the relationship between corn futures prices of China and the United States

 

ABSTRACT. The futures prices of Chinese agricultural products are generally followed by the Chicago commodity exchange futures prices. The main reason for this study is to test the relationship between corn futures prices in China and the United States. The Johansen Co-integration test and VECM are employed in this paper. The results indicated that corn futures prices in America had a significant effect on prices of China. There is a long-term relationship of association between the two variables. By comparison, the information in the corn market of America transfers faster and the U.S. corn futures market plays a leading role. This research also put forward some suggestions about how to promote the development of China’s corn futures market.

 

Received: July, 2015

1st Revision: September, 2015

Accepted: December, 2015

 

DOI: 10.14254/2071-8330.2015/8-3/15

JEL Classification: G13, Q17

Keywords: : corn futures, price, Co-integration, VECM