Causality of the relationship between wheat prices and economic conditions - an evidence for sustainable development
Year: 2020
Type: article
Abstract: Comparative research between different countries can provide valuable insights in economic knowledge and economic policy.The position of agriculture within the economy seems more important in developing countries than in the developed ones.The research indicates that the industrial model with the metaphor of "cheap and abundant food" ravaged the natural environment, degrading ecosystems at the same time.Thus, a fundamental challenge to agriculture appeared, which also applies to agricultural holdings, i.e.: an increasing agricultural production without increasing environmental pressure using the concept of sustainable development (GOS, 2011).Creating a sustainable agricultural development path means an improvement of the quality of life in rural Abstract.In the recent years agriculture as a branch of economy has been the subject of large transformations.Agricultural holdings have played a very important role for the sustainable socio-economic development.Agriculture is becoming more modern but its contribution to GDP is decreasing.The question as to the connection between the condition of the agricultural market and economy-wide conditions and sustainable development seems to be fundamental.This is the objective of this paper.Based on wheat prices and in the US, the UK, France and Poland in the years 2000-2018, the connection between these variables was determined.The tests for causality were carried, and the auto-regression VAR model was built.The general conclusions are consistent.It is evident that economy-wide conditions indeed depend on the prices of agricultural produce from the previous periods.High prices for agricultural produce and, in particular those of wheat, weaken future economic conditions.This conclusion for Poland and France is strong, while it is weaker for the UK and the US.
Source: JOURNAL OF INTERNATIONAL STUDIES
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Zero hunger
Open Access status: diamond
OpenAlex ID: W3162017398