Analysis of Soybean Price Transmission between Major Brazilian Producing Areas: A Co-integration and Causality Approach.

Soybean production plays a significant role in both the Brazilian and in the world economy. A relevant issue to be observed in agribusiness management is related to its price transmission. The main objective of this paper aims to analyze the price transmission process among major Brazilian soybean producing areas: States of Mato Grosso, Paraná, Rio Grande do Sul and Goiás, covering the period from January 2008 to December 2015. In order to fulfill this objective a bivariate co-integration test for soybean prices, as well as the autoregression vector model (VAR) for the Granger causality analysis and function Impulse response. The results showed that there is price transmission between all the states analyzed, except for the State of Goiás. [ABSTRACT FROM AUTHOR]