lntegracao e Transmissao de Precos no Mercado lnternacional de Cafe Arabica

Abstract: This study aims to analyze the existence of price integration in the main arabica coffee producing countries and in the international price. The analytical framework was a multivariate model of co-integration, a VEC model and persistence profiles. The results show that Brazil, Colombia, Mexico, Guatemala, Peru and Honduras are integrated among them and their prices reacted to fluctuation on international prices. The relationship pattern was not characterized by extreme interdependence and issues related to market liberalization still have influence on the equilibrium in the long-term. Brazil was the most integrated to the international market, demonstrating that as higher is the country's share in production and export, higher is the integration.