Aline Queiroz de Assis Andreotti

The current study has as main goal to analyse the price transmission of manioc and starch, approaching the principal productive regions and the relation between root and starch manufacturers. With a specific objective, identify their long-term behavior and verify possible asymmetries on the price transmission. The analysis of price transmission between markets and co-integration test indicated that prices co-integrated in the long run, taking the application of Vector Error Correction Model (VEC). Intending to test the Law of One Price and degree of market interactions, it was imposed a long-term restriction that equals the parameters β from both variables to one. Through the test χ² it was possible to verify that the Law of One Price would only be valid in the Extremo Oeste Paranaense. The tests of co-integration pointed out to the asymmetry model between levels that co-integrated the regions in a long-term, taking along the usage of the Vector Error Correction Model (VEC) methodology. The results indicated asymmetrical relations between the prices of starch and root on the majority of analysed regions. Therefore, the current study has concluded that the starch market  were  not spatially integrated and that the manioc and starch market pointed a competitive inefficiency, since the changes in starch prices were transmitted differently than the manioc prices.