Market integration in the international coal industry: a cointegration approach
2006 (English)In: Energy Journal, ISSN 0195-6574, E-ISSN 1944-9089, Vol. 27, no 1, 99-118 p.Article in journal (Refereed) Published
The purpose of this paper is to test the hypothesis of the existence of a single economic market for the international coal industry, separated for coking and steam coal, and lo investigate market integration over time. This has been conducted by applying cointegration and error-correction models on quarterly price series data in Europe and Japan over the time period 1980-2000. Both the coking and the steam coal markets show evidence of global market integration, as demonstrated by the stable long-run cointegrating relationship between the respective price series in different world regions. This supports the hypothesis of a globally integrated market. However, when analyzing market integration over time it is not possible to confirm cointegration in the 1990s for steam coal. Thus, compared to the coking coal market, the steam coal market looks somewhat less global in scope.
Place, publisher, year, edition, pages
2006. Vol. 27, no 1, 99-118 p.
Research subject Economics
IdentifiersURN: urn:nbn:se:ltu:diva-3194Local ID: 0fd13780-b232-11db-bf9d-000ea68e967bOAI: oai:DiVA.org:ltu-3194DiVA: diva2:976050
Validerad; 2006; 20061010 (evan)2016-09-292016-09-29Bibliographically approved