Abstract
The orange juice chain is still a representative sector of the Brazilian agribusiness and its performance needs to be analyzed, allowing the definition of strategies to enhance competitiveness. We investigated the threshold, short and long-run asymmetries of price transmission from international-to-domestic prices of oranges in Brazil, using the threshold asymmetry error correction model. Monthly data on international Frozen Concentrated Orange Juice (FCOJ) prices and domestic prices of oranges in Brazil for the period from January 1996 to February 2014 were used as well as producers price of oranges converted to US dollars per pound equivalent to one pound of FCOJ received by the producers in Brazil and international prices from the New York Board of Trade for FCOJ. We found evidence of threshold and asymmetries in short- and long-run price transmission and asymmetric adjustment towards a long-run equilibrium relationship between international-to-domestic prices in Brazil. We also find evidence of asymmetries in short-run price transmission. The decreases in international prices that lead to shrinkage in marketing margins are passed on more quickly to domestic prices than increases are that lead to expanding marketing margins. Acknowledgement :
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