1. Are ethanol markets globalized or regionalized?
- Author
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Sang Hoon Kang, Ali Ahmed, Gazi Salah Uddin, Jose Areola Hernandez, Anupam Dutta, Rennes School of Business, Linköping University (LIU), University of Vaasa, University of South Australia [Adelaide], Areola Hernandez, Jose, Uddin, Gazi Salah, Dutta, Anupam, Ahmed, Ali, and Kang, Sanghoon
- Subjects
Statistics and Probability ,ethanol markets ,Interdependence ,[QFIN]Quantitative Finance [q-fin] ,Frequency data ,Statistical and Nonlinear Physics ,Monetary economics ,01 natural sciences ,010305 fluids & plasmas ,asymmetric effects ,ARDL ,Granger causality ,Asymmetric effects ,Ethanol markets ,0103 physical sciences ,Economics ,ADDC ,010306 general physics ,interdependence ,health care economics and organizations - Abstract
International audience; This study investigates whether the US and Brazilian ethanol markets are globalized or regionalized (i.e., whether they are interdependent or independent) using weekly frequency data from July 2006 to December 2017. The empirical results indicate that the US ethanol market is unlinked to the Brazilian one in the short-run, however in the long-run they are globalized (interdependent) and co-influence each other. Asymmetric effects are identified between both ethanol markets and the Brazilian ethanol market Granger causes the US ethanol market. The findings help us understand the asymmetric dependence of the US ethanol market.
- Published
- 2020
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