World Coffee Prices: A Co-integration Analysis. A statistical analysis of the co-integration relationship between world coffee prices

      Аннотация: In the world of consumption, coffee is one of the highest rated commodities that is used daily. Different nations and people all ages use coffee as a booster of energy, as a culture of living and as a great communication initiator. Scientifically, based from the economical aspect, the coffee market is inelastic commodity market available for us to explore. Since the process of production is extremely difficult long-term process, the quick changes in the demand and supply are highly unlikely. However, with the market expansion and constant growth of coffee demand, the influence of various external and internal factors always manage to change the course of coffee prices. Interestingly enough, the demand is solely determined by the choice and preference of the end consumers. This short summary is merely and introduction into a magnificent world of the coffee beans and their competitive market. This book gives you a chance to explore which factors influence the demand and supply and how different sorts react on price changes and their market movements.

Ключевые слова: cointegration, Coffee prices, Johansen Cointegration Test, Vector Error Correction, Arabica, Robusta, Unit Root test