Price Volatility Transmission in Food Supply Chains: A Literature Review
Article first published online: 13 MAR 2014
© 2014 Wiley Periodicals, Inc.
Volume 31, Issue 1, pages 3–13, Winter 2015
How to Cite
Assefa, T. T., Meuwissen, M. P.M. and Oude Lansink, A. G.J.M. (2015), Price Volatility Transmission in Food Supply Chains: A Literature Review. Agribusiness, 31: 3–13. doi: 10.1002/agr.21380
- Issue published online: 22 JAN 2015
- Article first published online: 13 MAR 2014
- European Union
This paper reviews the literature on price volatility transmission in vertical food markets. The methods and major findings of the literature are discussed and avenues for future research are suggested. The literature review shows that price volatility is analyzed using a class of univariate and multivariate GARCH models. The reviewed studies conclude that price volatility transmits along food supply chains thereby exposing all chain actors to risk and uncertainty. Extension of the limited sample period, country, product, and chain stages coverage of the current literature are suggested as avenues for future research. A largely ignored aspect in the current literature is the identification and empirical testing of the role of contextual factors on the degree of price volatility transmission.