| Publication |
2014.
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| Summary/Abstract |
Simultaneous rapid rise in both the world oil and agricultural commodity prices have increased interest in determining price transmission from oil prices to those of agricultural commodities. However, although a lot of the empirical research has studied the relation between oil price changes and economic activity, it is surprising that little research has been conducted on the relationship between oil price shocks and the large-size emerging industrial countries agricultural market. Therefore, the main goal of this study is that we are try to use the more detail and new China's weekly data which from 2004/9 to 2012/9 to fill this gap. This study examines the short and long-run interdependence between China fuel oil prices and the average of different kinds of key agricultural commodity prices in China. To this end, the Toda-Yamamoto causality approach and impulse response analysis method are applied to identification of the long and short-run interrelationships. In contrast to lots of the traditional causality analysis indicates that the oil prices and the agricultural commodity prices do not influence each other, our result is mix: we have inferred that the fluctuation of fuel oil price has a short-run effect on the dynamics of agricultural products in China; however, there are no significant in the long-run effects.
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