The Asian Rice Export Market: An Export Pricing Model That Examines the Impact of Commodities Market Speculation on Prices

There have been attempts to define the dynamics of how rice prices are determined in the market. There have also been attempts to define what constitutes the market and its structure. This work defines a specific market as the Asian Rice Export Market which includes India, Pakistan, Thailand and Vietnam. Using a dynamic model it further explores the structure of this market and how prices are determined in the market. During the financial crisis of 2008, speculation was under heavy scrutiny as a culprit of volatile rice prices. This work examines the impact of speculation and its role in determining rice export prices during the crisis and in the pre and post financial crisis period. It concludes with an analysis of how government export policies contribute to the change in export prices.