Journal of Advances in Economics and Finance

Download PDF (473.9 KB) PP. 97 - 116 Pub. Date: May 17, 2017

DOI: 10.22606/jaef.2017.22003

• Frank Canovatchel^*
  IT&S Division, CIT Program, Champlain College, Burlington, United States

There are many studies that have analyzed the market for rice exports in terms of two or three major Asian rice-exporting countries. To date, there is no work that analyzes the behavior of the four major Asian rice exporters. Using export prices from the world’s leading Asian rice exporting countries: Thailand, Vietnam, Pakistan and India, this article examines market behavior and how the financial crisis of 2008 impacted the evolution of this market’s pricing behavior. Given that more than half of the world’s population depends on rice as part of its caloric intake and food security, efficient price formation is critical to maintaining price stability. The impact of U.S. rice export prices is not considered in this work because the United States is an entity outside of this market economically and geographically speaking. The financial crisis of 2008 had a major impact on grain prices and, more specifically, on rice supplies and prices. This work will examine the market pre-crisis and post-crisis to demonstrate that this market is evolving from coherent and defined export market to a more independent and less price oriented export market. This work examines real export prices of 5% broken rice from July 2002 to December 2015 from these four countries. The model employed uses FGLS regression using panel data.

Financial crisis, rice exports, Asian rice export market

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