Regional Price Effects of Extreme Weather Events and Wheat Export Controls in Russia and Ukraine. (20th June 2016)

• Record Type: Journal Article
• Authors: Götz, Linde; Djuric, Ivan; Nivievskyi, Oleg
• Is Part Of: Journal of agricultural economics. Volume 67:Number 3(2016)
• Page Start: 741
• Page End: 763
• Publication Date: 2016-06-20
• Subjects: Agricultural trade policy -- climate change -- export controls -- extreme weather events -- food security -- grain markets -- international trade -- Russia -- Ukraine; Agriculture -- Economic aspects -- Periodicals; 338.1
• DOI: 10.1111/1477-9552.12167
• Languages: English
• ISSNs: 0021-857X

Abstract

Abstract: We build on the price transmission framework to identify domestic wheat price effects of wheat export controls. We explicitly take into account that a harvest failure causes domestic price effects. Moreover, the analysis at the regional level provides further evidence of the functioning of export controls in a large country. Results suggest a pronounced regional heterogeneity in the strength of domestic price effects of the 2010/11 export ban in Russia. The wheat price dampening effects amount to up to 67% and are strongest in the major wheat exporting region with direct access to the world market. This effect is transmitted to other regions by increased and reversed interregional trade flows. In contrast, we find that regional variation of export controls' domestic price effects in Ukraine is rather small.