Journal Description
Commodities
Commodities
is an international, peer-reviewed, open access journal on economics, finance, and commerce published quarterly online by MDPI.
- Open Access— free for readers, with article processing charges (APC) paid by authors or their institutions.
- High Visibility: indexed within RePEc, and other databases.
- Rapid Publication: first decisions in 16 days; acceptance to publication in 5.8 days (median values for MDPI journals in the second half of 2023).
- Recognition of Reviewers: APC discount vouchers, optional signed peer review, and reviewer names published annually in the journal.
Latest Articles
Navigating the Complex Landscape of Economic Research Concerning Commodities
Commodities 2024, 3(1), 36-38; https://doi.org/10.3390/commodities3010003 - 11 Jan 2024
Abstract
As we delve into the realm of economic research concerning commodities, it becomes increasingly evident that the contemporary world is marked by constant change and evolving dynamics [...]
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Open AccessArticle
Time-Varying Impact of Commodity Prices on Output Growth and Inflation in the Eastern European Countries
by
and
Commodities 2024, 3(1), 19-35; https://doi.org/10.3390/commodities3010002 - 20 Dec 2023
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Using quarterly data for the 2002–2022 period, we estimate the output and inflation effects of several commodity prices (agricultural raw materials, crude oil, and metals) for 8 Eastern European countries with different exchange rate regimes. The Kalman filter is used for estimating the
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Using quarterly data for the 2002–2022 period, we estimate the output and inflation effects of several commodity prices (agricultural raw materials, crude oil, and metals) for 8 Eastern European countries with different exchange rate regimes. The Kalman filter is used for estimating the time-varying parameters. Our main findings can be summarized in the following way: (i) higher crude oil prices are inflationary in most of the countries (except Slovakia), with a stronger price effect since 2020; (ii) crude oil prices are neutral with respect to output growth in 4 out of 8 countries, with an expansionary effect in Croatia, Slovenia, and Romania, as well as a contractionary effect in Slovakia, but the crude oil shock of 2021–2022 seems to be expansionary in almost all countries (except Slovakia), regardless of the exchange rate regime practiced; (iii) inflation and output effects of metals prices are quite heterogeneous across countries; (iv) agricultural raw material prices play a role in both inflation and output growth only in Bulgaria and Poland. Since 2021, a growing inflationary impact of crude oil prices suggests a stronger monetary policy reaction to the oil shock, especially in the presence of its favorable output effect.
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Open AccessArticle
Trade-Related Government Expenditure and Developing Countries’ Participation in Global Value Chains
Commodities 2024, 3(1), 1-18; https://doi.org/10.3390/commodities3010001 - 20 Dec 2023
Abstract
The effect of trade-related government expenditure on backward and forward participation in global value chains (GVCs) is at the heart of the present analysis. The latter builds on an unbalanced panel dataset of 74 developing countries over the annual period from 2005 to
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The effect of trade-related government expenditure on backward and forward participation in global value chains (GVCs) is at the heart of the present analysis. The latter builds on an unbalanced panel dataset of 74 developing countries over the annual period from 2005 to 2018. It has used several estimators, the primary one being the Quantile via Moments approach. The outcomes suggest that trade-related government expenditure exerts no significant effect on countries’ forward participation in GVCs. At the same time, countries located in the 20th to 90th quantiles experience a positive and significant effect of trade-related government expenditure on backward participation in GVCs, with the magnitude of this positive effect being larger for countries in the upper quantiles than for countries in the lower quantiles. The least integrated countries into the backward participation in GVCs (i.e., those in the 10th quantile) experience no significant effect of trade-related government expenditure on backward participation in GVCs. Interestingly, expenditure in favour of developing economic infrastructure, and expenditure for enhancing productive capacities reinforce each other in positively affecting backward GVC participation by countries located in the upper quantiles (i.e., the 50th to 90th quantiles). However, the interaction between these two types of trade-related government expenditure does not influence countries’ forward participation in GVCs. These findings shed light on the importance of trade-related expenditure for enhancing developing countries’ participation in backward GVCs.
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(This article belongs to the Special Issue Uncertainty, Economic Risk and Commodities Markets)
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Innovation and Drivers of Productivity: A Global Analysis of Selected Critical Minerals
Commodities 2023, 2(4), 417-432; https://doi.org/10.3390/commodities2040024 - 24 Nov 2023
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Innovation and technology are important tools for delivering efficiency and productivity improvement in the minerals sector. The uptake of technologies has proven to be an important lever for increasing the productivity of the mining sector. This paper provides a comprehensive analysis of mine-level
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Innovation and technology are important tools for delivering efficiency and productivity improvement in the minerals sector. The uptake of technologies has proven to be an important lever for increasing the productivity of the mining sector. This paper provides a comprehensive analysis of mine-level productivity using global data of copper, gold, and platinum from 1991 to 2020. Various drivers of productivity have been analysed to draw policy insights. Empirical findings reveal significant disparities in terms of technical efficiency and productivity across mines and regions. The further decomposition of total factor productivity (TFP) into its different components suggests that the adoption of innovative practices and investment in technology adoption could improve the overall productivity of these commodities sectors. Our findings also suggest that an appropriate input mix and optimal scale of production could boost platinum mining productivity. Regional disparities in the productivity of different commodities sectors (e.g., South Africa vs. Zimbabwe) give policymakers insights into how to support production scale and productivity through appropriate input mixes.
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Open AccessCase Report
Modelling Risk for Commodities in Brazil: An Application for Live Cattle Spot and Futures Prices
Commodities 2023, 2(4), 398-416; https://doi.org/10.3390/commodities2040023 - 08 Nov 2023
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This study analyses a series of live cattle spot and futures prices from the Boi Gordo Index (BGI) in Brazil. The objective is to develop a model that best portrays this commodity’s behaviour to estimate futures prices more accurately. The database created contains
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This study analyses a series of live cattle spot and futures prices from the Boi Gordo Index (BGI) in Brazil. The objective is to develop a model that best portrays this commodity’s behaviour to estimate futures prices more accurately. The database created contains 2010 daily entries in which trade in futures contracts occurs, as well as BGI spot sales in the market, from 1 December 2006 to 30 April 2015. One of the most important reasons why this type of risk needs to be measured is to set loss limits. To identify patterns in price behaviour in order to improve future transaction results, investors must analyse fluctuations in asset values for longer periods. Bibliographic research reveals that no other study has conducted a comprehensive analysis of this commodity using this approach. Cattle ranching is big business in Brazil given that in 2021, this sector moved BRL 913.14 billion (USD 169.29 billion). In that year, agribusiness contributed 26.6% of Brazil’s total gross domestic product. Using the proposed risk modelling technique, economic agents can make the best decision about which options within these investors’ reach produce more effective risk management. The methodology is based on Holt–Winters exponential smoothing algorithm, autoregressive integrated moving-average (ARIMA), ARIMA with exogenous inputs, generalised autoregressive conditionally heteroskedastic and generalised autoregressive moving-average (GARMA) models. More specifically, five different methods are applied that allow a comparison of 12 different models as ways to portray and predict the BGI commodity behaviours. The results show that GARMA with order c(2,1) and without intercept is the best model. Investors equipped with such precise modelling insights stand at an advantageous position in the market, promoting informed investment decisions and optimising returns.
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Open AccessArticle
Analyzing Risk Premiums in the Brazilian Power Market: A Quantitative Study
Commodities 2023, 2(4), 382-397; https://doi.org/10.3390/commodities2040022 - 01 Nov 2023
Abstract
This paper conducts an empirical analysis of risk premiums in the Brazilian electricity market, a critical but understudied field. Employing two distinct methodologies—Average Forward Prices and Last Observed Forward Prices—the study calculates risk premiums between spot and forward electricity prices. Our analysis consistently
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This paper conducts an empirical analysis of risk premiums in the Brazilian electricity market, a critical but understudied field. Employing two distinct methodologies—Average Forward Prices and Last Observed Forward Prices—the study calculates risk premiums between spot and forward electricity prices. Our analysis consistently identifies negative risk premiums, which serve as indicators that the market may be underestimating certain types of risk. These underestimations are potentially influenced by inherent market uncertainties, including volatile demand, unpredictable supply, and frequent regulatory shifts. Additionally, we observe a high volatility in risk premiums, signifying a dynamic and ever-changing market where expectations are continuously recalibrated. Such conditions present possible arbitrage opportunities for market actors and underline the need for policymakers to introduce measures mitigating market unpredictability. By focusing on these nuances, this paper enriches the broader discourse on risk premiums in electricity markets and underscores the necessity for further research aimed at devising effective risk management strategies.
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(This article belongs to the Special Issue Uncertainty, Economic Risk and Commodities Markets)
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Open AccessReview
Internet of Things for Crop Farming: A Review of Technologies and Applications
Commodities 2023, 2(4), 367-381; https://doi.org/10.3390/commodities2040021 - 07 Oct 2023
Cited by 1
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Climate change, soil erosion, and degradation among others affect the growth and production of crops. Soil is suffering from intensive farming and unsustainable soil disturbance, leading to severe soil degradation. The Internet of Things (IoT) allows the monitoring of crucial environmental parameters such
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Climate change, soil erosion, and degradation among others affect the growth and production of crops. Soil is suffering from intensive farming and unsustainable soil disturbance, leading to severe soil degradation. The Internet of Things (IoT) allows the monitoring of crucial environmental parameters such as soil nutrients, moisture, humidity, and temperature. A pre-understanding of these parameters allows agriculturists to use the optimum quantity of water and fertilizer for different types of soil. Soil fertility can be detected by using NPK sensors. The Internet of Things (IoT) brought a new face to the crop farming approach where conventional methods are automated and/or remotely controlled to improve crop farming. In this paper, a survey on IoT technologies for crop farming including sensors, communication, and network protocols in crop farming activities is considered. Additionally, applications of IoT technologies in soil management and monitoring, growth and yield estimation, and quality control mechanisms are presented.
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Open AccessArticle
Digital Gold or Digital Security? Unravelling the Legal Fabric of Decentralised Digital Assets
Commodities 2023, 2(4), 355-366; https://doi.org/10.3390/commodities2040020 - 07 Oct 2023
Cited by 2
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This paper offers an in-depth exploration into the intricate world of decentralized digital assets (DDAs), shedding light on their categorization as currencies, commodities, or securities. Building on foundational cases such as SEC v. Howey, the analysis delves into the current controversies surrounding
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This paper offers an in-depth exploration into the intricate world of decentralized digital assets (DDAs), shedding light on their categorization as currencies, commodities, or securities. Building on foundational cases such as SEC v. Howey, the analysis delves into the current controversies surrounding assets like XRP and LBC, exploring the nuances in their classification. By highlighting the challenges of defining categories of DDAs within traditional legal frameworks, this study emphasizes the need for a simple taxonomy that encapsulates the dynamism of digital currencies while permitting flexibility. A proposed framework aims to simplify the categorization process while respecting recent jurisprudence, ensuring regulatory clarity for developers and users of DDAs.
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Open AccessArticle
Appetite or Distaste for Cell-Based Seafood? An Examination of Japanese Consumer Attitudes
Commodities 2023, 2(4), 329-354; https://doi.org/10.3390/commodities2040019 - 03 Oct 2023
Abstract
Conventional seafood production contributes to some of the most alarming global problems we face at present, such as the destabilization of aquatic ecosystems, human health risks, and serious concerns for the welfare of trillions of aquatic animals each year. The increasing global appetite
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Conventional seafood production contributes to some of the most alarming global problems we face at present, such as the destabilization of aquatic ecosystems, human health risks, and serious concerns for the welfare of trillions of aquatic animals each year. The increasing global appetite for seafood necessitates the development of alternative production methods that meet consumer demand, while circumventing the aforementioned problems. Among such alternatives, cell-based seafood is a promising approach. For its production, cells are taken from live aquatic animals and are cultivated in growth media, thus making the rearing, catching, and slaughtering of a great number of animals redundant. In recent years, this alternative production method has transitioned from aspiration to reality, and several cell-based seafood start-ups are preparing to launch their products. Market success, however, has been reckoned to largely depend on consumer attitudes. So far, there has been little research exploring this within Asia, and none in Japan, which has one of the highest seafood consumption footprints per capita globally. The present study explores cell-based seafood-related knowledge, attitudes and behavioral intentions of Japanese consumers (n = 110) via a questionnaire-based, quantitative analysis. Although findings suggest low awareness of the concept of cell-based seafood, attitudes and intentions were positive overall, with about 70% of participants expressing an interest in tasting, and 60% expressing a general willingness to buy cell-based seafood. Younger age was significantly associated with more positive attitudes, while prior knowledge of cell-based seafood was strongly linked to willingness to pay a premium for cell-based products. While highlighting the need for information campaigns to educate Japanese consumers about cell-based seafood, this study’s findings suggest the Japanese market to be moderately ready for the launch of such products.
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(This article belongs to the Special Issue Determinants and Methods of Quality Management in Agriculture and Food Processing)
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Open AccessArticle
Advancing Safe Broiler Farming in Bangladesh: An Investigation of Management Practices, Financial Profitability, and Consumer Perceptions
Commodities 2023, 2(3), 312-328; https://doi.org/10.3390/commodities2030018 - 08 Sep 2023
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This study examined the rearing and management methods, financial profitability, and consumer perceptions towards safe broiler production in Bangladesh. Employing stratified random sampling, 60 participants (30 farmers and 30 consumers) from two sub-districts in Mymensingh district were interviewed. A mix of descriptive, mathematical,
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This study examined the rearing and management methods, financial profitability, and consumer perceptions towards safe broiler production in Bangladesh. Employing stratified random sampling, 60 participants (30 farmers and 30 consumers) from two sub-districts in Mymensingh district were interviewed. A mix of descriptive, mathematical, and statistical approaches was used for data analysis and representation. This study identified key components of safe broiler management, including brooding, housing, feed and water management, lighting, litter maintenance, medication and vaccination, and biosecurity and hygiene control. A benefit–cost of 1.40 obtained from profitability analysis indicated the profitability of safe broiler farming. Consumer awareness of safe broiler meat was assessed using the Likert scale, highlighting the significance of nutrition, packaging, freshness, taste, and natural ingredients in purchasing decisions. The Logit model revealed that factors such as meat size, freshness, taste, and family income significantly impacted consumer purchasing choices. The main challenges faced by safe broiler producers included high prices and limited availability of feed, day-old chicks, medicine and vaccines, and lack of knowledge. To ensure efficient safe broiler production in Bangladesh, this study recommends the implementation of stable input supplies, accessible credit, skill development, and infrastructure enhancement.
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Open AccessHypothesis
Jet Fuel Price Risk and Proxy Hedging in Spot Markets: A Two-Tier Model Analysis
Commodities 2023, 2(3), 280-311; https://doi.org/10.3390/commodities2030017 - 31 Aug 2023
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This paper applies a two-tier model based on fuel hedging (model 1) and the testing of the impact of commodity risk on airline capacity forecasting, which is based on a system dynamics framework (model 2). Model 1 provides a comprehensive examination of the
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This paper applies a two-tier model based on fuel hedging (model 1) and the testing of the impact of commodity risk on airline capacity forecasting, which is based on a system dynamics framework (model 2). Model 1 provides a comprehensive examination of the worldwide airline industry, including an analysis of the statistical impact of oil price fluctuations on the sector and the corresponding hedging strategies employed by airlines. This study examines a sample of North American and European airlines over a 10-year timeframe to assess the degree to which these airlines have engaged in kerosene hedging for future periods and the potential impact of such hedging on their corporate value and performance. In model 2, the author integrates a capacity-forecasting model within the system dynamics framework, drawing upon the theory of capacity forecasting. The study examines the impact of commodity risk by analysing the influence of fluctuations in the jet fuel spot price on the average airfare and its subsequent effects on other interdependent capacity variables. The hypotheses presented in this study were formulated based on a comprehensive review of the relevant literature and a causal feedback loop diagram. The diagram effectively depicts the dynamic interrelationships between capacity forecasting and risk variables. Furthermore, the diagram capturing causal feedback loops was transformed into a stock-flow diagram. This diagram was then utilised to evaluate the hypotheses that were derived using a dataset that pertains to the domestic airline market in the United States. The verification of the qualitative and quantitative models demonstrates the proven impact of commodity risk on capacity forecasting.
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Open AccessArticle
Which Commodity Sectors Effectively Hedge Emerging Eastern European Stock Markets? Evidence from MGARCH Models
by
and
Commodities 2023, 2(3), 261-279; https://doi.org/10.3390/commodities2030016 - 03 Aug 2023
Cited by 1
Abstract
This study aims at examining whether hedging emerging Eastern Europe stock markets with commodities sectors can help in reducing market risks and whether it has the same effectiveness among different sectors. As an attempt to achieve this goal, we opt for three types
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This study aims at examining whether hedging emerging Eastern Europe stock markets with commodities sectors can help in reducing market risks and whether it has the same effectiveness among different sectors. As an attempt to achieve this goal, we opt for three types of MGARCH model. These are DCC, ADCC and GO-GARCH, which are used with each bivariate series to model dynamic conditional correlations, optimal hedge ratios and hedging effectiveness. Rolling window analysis is used for out-of-sample one-step-ahead forecasts from December 1994 to June 2022. The results have shown that the commodities sectors of industrial metals and energy represent the optimal hedging instruments for emerging Eastern Europe stock markets as they have the highest hedging effectiveness. Additionally, our empirical results have proved that hedge ratios estimated by the DCC and ADCC models are very similar, which is not the case for GO-GARCH, and that hedging effectiveness is preferably estimated by the ADCC model.
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(This article belongs to the Special Issue Uncertainty, Economic Risk and Commodities Markets)
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Assesing Climate Change Risk in the Mining Industry: A Case Study in the Copper Industry in the Antofagasta Region, Chile
Commodities 2023, 2(3), 246-260; https://doi.org/10.3390/commodities2030015 - 18 Jul 2023
Cited by 1
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The challenges climate change poses require careful consideration and addressing within specific industries. In the mining context, climate change introduces potential limitations to the sustainable sourcing of minerals, thereby amplifying the criticality of several metals. However, most studies examining mineral criticality fail to
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The challenges climate change poses require careful consideration and addressing within specific industries. In the mining context, climate change introduces potential limitations to the sustainable sourcing of minerals, thereby amplifying the criticality of several metals. However, most studies examining mineral criticality fail to assess the localized impacts of climate change, despite significant variations occurring at a relatively small scale. In this study, we propose a methodological approach for conducting a climate risk assessment in the mining industry, encompassing the identification of relevant hazards, vulnerabilities, and exposure specific to the sector. To illustrate the application of this approach, we utilize micro-level data for the Antofagasta region in Chile, a prominent mining cluster situated in a country projected to be profoundly affected by climate change. The findings of this study underscore the necessity for coordinated efforts in adaptation and climate resilience while offering a valuable tool for allocating resources to more vulnerable locations, thus strengthening the mineral supply chain.
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Open AccessArticle
Evaluation of the Quality of Raspberries (Rubus idaeus L.) Grown in Balanced Fertilization Conditions
Commodities 2023, 2(3), 220-245; https://doi.org/10.3390/commodities2030014 - 11 Jul 2023
Cited by 1
Abstract
(Background) Raspberry (R. idaeus L.) is very popular with consumers around the world for its intense flavor, attractive appearance, and health benefits. In recent years, interest in healthy eating and natural products has increased, and raspberry fits perfectly into these trends, which
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(Background) Raspberry (R. idaeus L.) is very popular with consumers around the world for its intense flavor, attractive appearance, and health benefits. In recent years, interest in healthy eating and natural products has increased, and raspberry fits perfectly into these trends, which translates into its greater importance on the consumer market. (Aim) The aim of this study was the commodity evaluation of raspberry fruits bearing fruit on 2-year-old shoots, cultivated under conditions of varied nitrogen fertilization against the background of constant phosphorus-potassium fertilization. (Methodology) The first-order factors were cultivars (‘Laszka’ and ‘Glen Ample’), and the second-order factor was nitrogen fertilization (0, 50, 100, and 150 kg N ha−1), against the background of constant phosphorus-potassium fertilization (100 kg P2O5 and 120 kg K2O ha−1). The experiment was set up in a dependent split-plot design with three repetitions. (Results) The importance of raspberry on the consumer market was shaped by taste and quality of fruit, health benefits, naturalness and freshness, universality of use, availability, and nutritional trends. (Conclusions) The tested cultivars were characterized by similar production and quality capabilities. Fertilization of the tested cultivars with a dose of 135 kg N·ha−1 turned out to be justified in terms of yield. Increasing nitrogen doses resulted in a significant increase in fresh fruit yield and fruit weight. Different doses of nitrogen increased fruit resistance to mechanical damage, firmness, and quality indices.
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(This article belongs to the Special Issue Determinants and Methods of Quality Management in Agriculture and Food Processing)
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Open AccessReview
Market Connectedness and Volatility Spillovers: A Meta-Literature Review
Commodities 2023, 2(3), 201-219; https://doi.org/10.3390/commodities2030013 - 27 Jun 2023
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Evaluation of market connectedness and asymmetric volatility spillover has recently seen a surge in financial risk analytics and portfolio diversification. We carried out a meta-literature review on connectedness and spillovers, providing solid insight into the research field and robust guidelines for future investigation.
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Evaluation of market connectedness and asymmetric volatility spillover has recently seen a surge in financial risk analytics and portfolio diversification. We carried out a meta-literature review on connectedness and spillovers, providing solid insight into the research field and robust guidelines for future investigation. The review consists of a quantitative bibliometric analysis of 594 papers and a qualitative content analysis of 77 papers covering 1991 to 2021. The results of the meta-citation analysis show that Diebold’s Spillover index (2007) is the predominant method in most works as far as market connectedness and spillover are concerned. With an extensive review, we achieved the following objectives: (1) Analyze the most influential authors, journals, and publications. (2) Understand the research streams and most studied streams. (3) Understand the theme’s structure, thematic evolution, and keyword trends. (4) Examine the pattern of collaboration and most productive affiliations. (5) Explore future research directions and untapped areas. The content analysis revealed the following important research streams in the current literature: (1) Asymmetries in market connectedness. (2) Influence of macro factors in market connectedness and spillover. (3) The role of oil in market spillovers and hedging portfolios. (4) Dynamic cross-market connectedness and spillovers. Our study is the first to employ a meta-review to assess the domain of market connectedness; thus, our work will significantly contribute to macroeconomic policymakers, researchers and hedging investors.
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Open AccessArticle
Oil Prices, World Trade Policy Uncertainty, and the Trade Balance: The Case of Korea
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Commodities 2023, 2(3), 188-200; https://doi.org/10.3390/commodities2030012 - 26 Jun 2023
Abstract
This article studies the asymmetric effects that the price of crude oil has on Korean exports to and imports from its largest partners—China, the U.S., and Japan—controlling for world trade policy uncertainty. The results support the evidence of the long-run asymmetry of oil
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This article studies the asymmetric effects that the price of crude oil has on Korean exports to and imports from its largest partners—China, the U.S., and Japan—controlling for world trade policy uncertainty. The results support the evidence of the long-run asymmetry of oil prices for Korea’s exports to Japan, and imports from China and Japan. However, there is no evidence of the short-run asymmetry of oil prices. Finally, world trade policy uncertainty appears to be more important for determining Korea’s bilateral trade in the short run than in the long run.
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(This article belongs to the Special Issue Uncertainty, Economic Risk and Commodities Markets)
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A Game-Theoretic Analysis of Canada’s Entry for LNG Exports in the Asia-Pacific Market
by
and
Commodities 2023, 2(2), 169-187; https://doi.org/10.3390/commodities2020011 - 12 Jun 2023
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The import demand for energy resources, including liquefied natural gas (LNG), has been steadily increasing in the Asia-Pacific region. Australia, the Middle East (Qatar), the Russian Federation, and the U.S. are the major players who compete strategically to capture this ever-growing market for
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The import demand for energy resources, including liquefied natural gas (LNG), has been steadily increasing in the Asia-Pacific region. Australia, the Middle East (Qatar), the Russian Federation, and the U.S. are the major players who compete strategically to capture this ever-growing market for LNG. The objective of this paper is to examine the potential for Canada’s entry into this market as another LNG exporter and what impact that can have on the existing suppliers. Using a game-theoretic LNG export competition model, we explore the conditions under which Canada can make a profitable entry. We also investigate the effect of Canada’s entry on the profitability of the four incumbent exporters. Employing a multi-leader Stackelberg model, we found that Canada’s entry could be a Pareto superior outcome under certain conditions because it benefits all competing firms and consumers. Further, Canada’s entry into the LNG export market always helps the low-cost incumbent firms by increasing their output and profit. However, the high-cost incumbent firms’ output falls, while their profit may increase or decrease depending on the unit cost and market size parameters. With differential export costs between Canada and the U.S., the latter has an incentive to act strategically to affect the entrance of the former.
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Open AccessEditorial
The Future of Commodities
Commodities 2023, 2(2), 168; https://doi.org/10.3390/commodities2020010 - 31 May 2023
Abstract
Asset markets have long contained a section devoted to commodities, breaking them into «soft», «grains», «metals», «energy», etc [...]
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(This article belongs to the Special Issue The Future of Commodities)
Open AccessArticle
Longitudinal Principal Component and Cluster Analysis of Azerbaijan’s Agricultural Productivity in Crop Commodities
by
and
Commodities 2023, 2(2), 147-167; https://doi.org/10.3390/commodities2020009 - 08 May 2023
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Understanding long-term agricultural productivity is essential for designing agricultural policies, planning and targeting other economic policies (e.g., industrial policy), and managing agricultural business models. In a developing and oil-rich country such as Azerbaijan, agriculture is among the limited opportunities to diversify oil-based value
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Understanding long-term agricultural productivity is essential for designing agricultural policies, planning and targeting other economic policies (e.g., industrial policy), and managing agricultural business models. In a developing and oil-rich country such as Azerbaijan, agriculture is among the limited opportunities to diversify oil-based value added and address broad welfare issues, as farmers and agricultural workers account for a large share of total employment and the labor force. However, previous studies have not focused on an empirical assessment of the long-term and subsectoral productivity of crop commodities. Rather, they have used a highly aggregated and short-run perspective, focusing mainly on the impact of the oil sector on agricultural sectors. Here, we applied principal component analysis and hierarchical cluster analysis to identify similarities and differences in the productivity of specific crop commodities (e.g., cotton, tea, grains, tobacco, hay, fruits, and vegetables) between 1950 and 2021. We show that some crops are similar in terms of their variation, growth rates, and transition from the Soviet era to the post-Soviet period. Although the dynamics of change are different for food and non-food crops and for high- and low-productive commodities, it is still possible to narrow down specific subsectors that could reach the same productivity levels. This helps map out the productivity levels of crop commodities over time and across different subsectors, allowing for better policy decisions and resource allocation in the agricultural sector. In addition, we argue about some outlier commodities and their backward status despite extensive government support. Our results provide a common basis for policymakers and businesses to focus specifically on productivity and profitability from an economic standpoint.
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Open AccessArticle
The Liquidity Effect of the U.S. QE on Sovereign Yield Spreads of Commodity-Exporting Countries
Commodities 2023, 2(2), 131-146; https://doi.org/10.3390/commodities2020008 - 25 Apr 2023
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This paper investigates the liquidity effect of the U.S. QE on the sovereign yield spreads of commodity-exporting countries by employing the two-stage least squares approach. The key contributions of the paper are in terms of our empirical findings. First, our results show that
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This paper investigates the liquidity effect of the U.S. QE on the sovereign yield spreads of commodity-exporting countries by employing the two-stage least squares approach. The key contributions of the paper are in terms of our empirical findings. First, our results show that the U.S. QE has an economically and statistically significant liquidity effect in terms of both the HPW illiquidity measure and the TIPS liquidity premium. This is of policy importance because adjusting for the liquidity premium is a key stage in modeling inflationary expectations. Second, our results show that the U.S. QE reduced the liquidity premium with improved market liquidity and hence reduce sovereign yield spreads of most commodity-exporting countries. This finding is of macroeconomic importance as reduced sovereign yield spreads have been shown to lead to higher real activity and higher credit activity.
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