Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses

This study examines the cointegration of sesame market prices in eight Ethiopian Commodity Exchange (ECX) warehouses and its implications for improving the functioning of sesame markets. We analyzed 489 weekly market price data points for each of the eight ECX warehouses, covering the period from en...

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Main Authors: Tazeze, Aemro, Kassie, Girma T., Abate, Gashaw T., Worku, Yonas, Asnake, Woinishet, Minot, Nicholas
Format: Informe técnico
Language:Inglés
Published: International Food Policy Research Institute 2024
Subjects:
Online Access:https://hdl.handle.net/10568/169871
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author Tazeze, Aemro
Kassie, Girma T.
Abate, Gashaw T.
Worku, Yonas
Asnake, Woinishet
Minot, Nicholas
author_browse Abate, Gashaw T.
Asnake, Woinishet
Kassie, Girma T.
Minot, Nicholas
Tazeze, Aemro
Worku, Yonas
author_facet Tazeze, Aemro
Kassie, Girma T.
Abate, Gashaw T.
Worku, Yonas
Asnake, Woinishet
Minot, Nicholas
author_sort Tazeze, Aemro
collection Repository of Agricultural Research Outputs (CGSpace)
description This study examines the cointegration of sesame market prices in eight Ethiopian Commodity Exchange (ECX) warehouses and its implications for improving the functioning of sesame markets. We analyzed 489 weekly market price data points for each of the eight ECX warehouses, covering the period from end of 2014 to mid-2024. We estimate the Multivariate Vector Error Correction Model (ECM) to analyze short- and long-term spatial price adjustments across warehouses. Of the eight warehouses, six showed significant spatial integration. The VECM results showed effective price transmission and strong short- and longterm market relationships. Short-term dynamics particularly revealed complex interactions. These findings highlight the varying impacts of price fluctuations between warehouses and the need to understand these interactions for better strategic decision making, resource allocation, and pricing strategy refinement. Furthermore, accelerating the speed of price pass through is vital to improve the livelihoods of sesame farmers in Ethiopia.
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spelling CGSpace1698712025-12-08T09:54:28Z Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses Tazeze, Aemro Kassie, Girma T. Abate, Gashaw T. Worku, Yonas Asnake, Woinishet Minot, Nicholas market prices commodity markets farmers livelihoods sesame seed food security This study examines the cointegration of sesame market prices in eight Ethiopian Commodity Exchange (ECX) warehouses and its implications for improving the functioning of sesame markets. We analyzed 489 weekly market price data points for each of the eight ECX warehouses, covering the period from end of 2014 to mid-2024. We estimate the Multivariate Vector Error Correction Model (ECM) to analyze short- and long-term spatial price adjustments across warehouses. Of the eight warehouses, six showed significant spatial integration. The VECM results showed effective price transmission and strong short- and longterm market relationships. Short-term dynamics particularly revealed complex interactions. These findings highlight the varying impacts of price fluctuations between warehouses and the need to understand these interactions for better strategic decision making, resource allocation, and pricing strategy refinement. Furthermore, accelerating the speed of price pass through is vital to improve the livelihoods of sesame farmers in Ethiopia. 2024-12-24 2025-01-24T19:48:46Z 2025-01-24T19:48:46Z Report https://hdl.handle.net/10568/169871 en Open Access application/pdf International Food Policy Research Institute Tazeze, Aemro; Kassie, Girma T.; Abate, Gashaw T.; Worku, Yonas; Asnake, Woinishet; and Minot, Nicholas. 2024. Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses. CGIAR Initiative on Rethinking Food Markets Technical Report December 2024. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/169871
spellingShingle market prices
commodity markets
farmers
livelihoods
sesame seed
food security
Tazeze, Aemro
Kassie, Girma T.
Abate, Gashaw T.
Worku, Yonas
Asnake, Woinishet
Minot, Nicholas
Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses
title Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses
title_full Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses
title_fullStr Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses
title_full_unstemmed Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses
title_short Cointegration analysis of sesame prices in Ethiopian commodity exchange warehouses
title_sort cointegration analysis of sesame prices in ethiopian commodity exchange warehouses
topic market prices
commodity markets
farmers
livelihoods
sesame seed
food security
url https://hdl.handle.net/10568/169871
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