How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission

Rising and unstable prices of rice and other staple foods threaten the food security of millions worldwide. These fluctuationsraise concerns about market response to price changes, especially regarding incentives for food production. This study investi-gates how the price dynamics in the Asian rice...

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Autores principales: Nguyen, Chi Trung, Morales, Luis Emilio, Hoang, Nam, Balié, Jean, Valera, Harold Glenn
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/177858
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author Nguyen, Chi Trung
Morales, Luis Emilio
Hoang, Nam
Balié, Jean
Valera, Harold Glenn
author_browse Balié, Jean
Hoang, Nam
Morales, Luis Emilio
Nguyen, Chi Trung
Valera, Harold Glenn
author_facet Nguyen, Chi Trung
Morales, Luis Emilio
Hoang, Nam
Balié, Jean
Valera, Harold Glenn
author_sort Nguyen, Chi Trung
collection Repository of Agricultural Research Outputs (CGSpace)
description Rising and unstable prices of rice and other staple foods threaten the food security of millions worldwide. These fluctuationsraise concerns about market response to price changes, especially regarding incentives for food production. This study investi-gates how the price dynamics in the Asian rice markets are affected by crises in low-quality rice by analysing monthly exportprice data for 25% broken rice for Vietnam, Thailand, India, and Pakistan. We test the rice price transmission and rice marketintegration of these countries using a vector autoregression (VAR) model. The results reveal a tendency for price signals to movetogether across our sample countries, despite variations in their rice production and consumption patterns. This suggests thatrice price shocks are transmitted between Asian exporting countries, particularly for low- quality rice. Furthermore, our analysissuggests that price dynamics in these markets are primarily influenced by crises affecting domestic agro-food chains and govern-ment policies related to price and trade. To improve production incentives during crises, governments could promote competitionamong traders, wholesalers, and input providers, and support farmers' income through supply oriented policies, including inputvouchers and agricultural credit. These policies can mitigate price and trade distortions that can negatively affect price incentivesand food security.
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spelling CGSpace1778582025-12-08T09:54:28Z How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission Nguyen, Chi Trung Morales, Luis Emilio Hoang, Nam Balié, Jean Valera, Harold Glenn rice food security price volatility trade exports market price policies agricultural credit Rising and unstable prices of rice and other staple foods threaten the food security of millions worldwide. These fluctuationsraise concerns about market response to price changes, especially regarding incentives for food production. This study investi-gates how the price dynamics in the Asian rice markets are affected by crises in low-quality rice by analysing monthly exportprice data for 25% broken rice for Vietnam, Thailand, India, and Pakistan. We test the rice price transmission and rice marketintegration of these countries using a vector autoregression (VAR) model. The results reveal a tendency for price signals to movetogether across our sample countries, despite variations in their rice production and consumption patterns. This suggests thatrice price shocks are transmitted between Asian exporting countries, particularly for low- quality rice. Furthermore, our analysissuggests that price dynamics in these markets are primarily influenced by crises affecting domestic agro-food chains and govern-ment policies related to price and trade. To improve production incentives during crises, governments could promote competitionamong traders, wholesalers, and input providers, and support farmers' income through supply oriented policies, including inputvouchers and agricultural credit. These policies can mitigate price and trade distortions that can negatively affect price incentivesand food security. 2025-07-05 2025-11-13T02:32:52Z 2025-11-13T02:32:52Z Journal Article https://hdl.handle.net/10568/177858 en Open Access application/pdf Wiley Nguyen, Chi Trung, Luis Emilio Morales, Nam Hoang, Jean Balié, and Harold Glenn Valera. "How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission." Australian Journal of Agricultural and Resource Economics 69, no. 4 (2025): 960-973.
spellingShingle rice
food security
price volatility
trade
exports
market price
policies
agricultural credit
Nguyen, Chi Trung
Morales, Luis Emilio
Hoang, Nam
Balié, Jean
Valera, Harold Glenn
How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission
title How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission
title_full How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission
title_fullStr How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission
title_full_unstemmed How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission
title_short How Integrated Are Rice Markets in Asia? Effects of Crises and Rice Export Quality on Price Shock Transmission
title_sort how integrated are rice markets in asia effects of crises and rice export quality on price shock transmission
topic rice
food security
price volatility
trade
exports
market price
policies
agricultural credit
url https://hdl.handle.net/10568/177858
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