Response of cotton to oil price shocks

Maria Mutuc, Suwen Pan, Darren Hudson

Research output: Contribution to journalArticle

4 Scopus citations

Abstract

This paper shows that the response of cotton prices in the U.S. to fluctuations in oil prices in the international market may differ greatly depending on whether the increase is driven by demand or supply shocks in the crude oil market. In the long-run, around 3% of the variability in cotton prices can be attributed to shocks to global demand for industrial commodities while none can be traced to oil supply shocks.

Original languageEnglish
Pages (from-to)40-49
Number of pages10
JournalAgricultural Economics Review
Volume12
Issue number2
StatePublished - 2011

Keywords

  • Cotton
  • Demand shocks
  • Oil price
  • SVAR
  • Supply shocks
  • VAR

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