publication . Preprint . 2011

The ENSO Impact on Predicting World Cocoa Prices

Ubilava, David; Helmers, Claes Gustav;
Open Access
  • Published: 01 Jan 2011
Cocoa beans are produced in equatorial and sub-equatorial regions of West Africa, Southeast Asia and South America. These are also the regions most affected by El Nino Southern Oscillation (ENSO) -- a climatic anomaly affecting temperature and precipitation in many parts of the world. Thus, ENSO, has a potential of affecting cocoa production and, subsequently, prices on the world market. This study investigates the benefits of using a measure of ENSO variable in world cocoa price forecasting through the application of a smooth transition autoregression (STAR) modeling framework to monthly data to examine potentially nonlinear dynamics of ENSO and cocoa prices. T...
free text keywords: Cocoa Prices, El Nino Southern Oscillation, Out-of-Sample Forecasting, Smooth Transition Autoregression, Demand and Price Analysis, Environmental Economics and Policy, Research Methods/ Statistical Methods, C32, Q11, Q54,
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