Farm wage and Rice Price dynamics in Bangladesh

Abstract Empirical findings explaining the wage-price nexus in Bangladesh are diverse and conflicting. A proper understanding of relationship between food prices farm wages is essential for planning policies support wellbeing security rural poor. In exploring link rising agricultural wages, this study analyzes dynamic relations those two by using monthly data from 1994 to 2014. standard vector error correction model (VECM) implemented determine short-run long-run relationships eight divisions Bangladesh. addition, we use autoregressive distributed lag (ARDL) models estimate pass-through coefficients compare effects rice price urban wage shocks on wages. We find statistical evidence a structural break January 2007 2009 variables all divisions. Different period until 2007/2009, after break, six out divisions, do not transmit short-run. Moreover, our show that have become less influential changes while influence has stronger some