This thesis explores three topics relating to price transmission in economic theory. The broad aim is to understand the price adjustment processes of the domestic and export coconut markets of Sri Lanka during the 1980 to 2012 period. The three topics investigated were the changing role of coconut oil exports due to changes in the global oil markets. Second the functioning of the domestic district coconut markets and finally the impact of the tsunami 2004 on the coastal district coconut markets. The analytical framework for the study is the economic theory of the Law of One Price. The first issue was examined using cointegration, vector error correction and impulse response methodologies. To address the function of the domestic district coconut markets at wholesale, retail and vertical levels Hansen and Seo econometric model was used. To test the effects of the tsunami on the coastal district coconut markets and to assess whether “rockets and feathers” phenomenon rose as a result of the tsunami Enders and Siklos econometric model was applied. The results confirmed that cointegration pattern of vegetable oils in the international market changed with the emergence of bio fuel around 2000. Cointegration of coconut oil with other oils also did change with the emergence of biofuel. The results of the domestic market showed that Colombo market was cointegrated with district coconut markets. . The results of market structures at all levels showed mixed results with more symmetrical markets at wholesale level and more asymmetric markets at the vertical level Results of the impact of tsunami showed that markets were disrupted unevenly with highest disruption in the vertical markets due to tsunami. The tsunami does not seem to have lead to rocket and feather phenomenon.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:690576 |
| Date | January 2015 |
| Creators | Abayasekara, Abayasekara Wannaku Arachchige Don Rohitha |
| Publisher | University of Aberdeen |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://digitool.abdn.ac.uk:80/webclient/DeliveryManager?pid=230076 |
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