Price Co-movements in International Markets and Their Impacts on Price Dynamics

Chapter

Abstract

The upsurges of international primary commodity prices of 1973 and 1979, the fall of the 1980s, the price recovery of the early 1990s, the drop of the end of the 1990s and the high rise of the 2000s reflect a cyclical evolution over several decades and one which stems from endogenous mechanisms. This chapter aims to review the literature regarding similarity phenomena and analyses price evolution over the last three decades. The impact of macroeconomic factors brings about co-movements of primary commodity prices. Numerous econometric tests of causality and cointegration are run to check interactions and co-movements between prices. In addition, some economic comments are suggested.

Keywords

Zinc Nickel Rubber Volatility Hedging 

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Université Pierre Mendès FranceGrenobleFrance

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