An empirical study on the relationship between corn futures prices of China and the United States
Vol. 8, No 3, 2015
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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 |
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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. |
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Received: July, 2015 1st Revision: September, 2015 Accepted: December, 2015 |
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DOI: 10.14254/2071-8330.2015/8-3/15 |
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JEL Classification: G13, Q17 |
Keywords: : corn futures, price, Co-integration, VECM |
