Journal Article

A Cointegration Analysis of Canadian Wood Pulp Prices

Janaki R.R. Alavalapati, Wiktor L. Adamowicz and Martin K. Luckert

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 3, pages 975-986
Published in print August 1997 | ISSN: 0002-9092
Published online August 1997 | e-ISSN: 1467-8276 | DOI:
A Cointegration Analysis of Canadian Wood Pulp Prices

Show Summary Details


The effects of the Canada-U.S. exchange rate, the U.S. pulp price, and the domestic use of pulp on the Canadian pulp price are investigated using a cointegration analysis. Results suggest that the U.S. pulp price is more important than other variables in determining the price of pulp in Canada. The incomplete pass-through of the exchange rate indicates that Canadian pulp producers may not have market power to increase their price of pulp. The temporary increase in the price of Canadian pulp in response to a devaluation of the Canadian dollar may be due to short-term contracts which Canadian pulp producers have with their importers.

Keywords: devaluation; market power; pass-through; short-term contracts; L730

Journal Article.  0 words. 

Subjects: Primary Products

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