@article{(Open Science Index):https://publications.waset.org/pdf/10001097, title = {The Effect of Oil Price Uncertainty on Food Price in South Africa}, author = {Goodness C. Aye}, country = {}, institution = {}, abstract = {This paper examines the effect of the volatility of oil prices on food price in South Africa using monthly data covering the period 2002:01 to 2014:09. Food price is measured by the South African consumer price index for food while oil price is proxied by the Brent crude oil. The study employs the GARCH-in-mean VAR model, which allows the investigation of the effect of a negative and positive shock in oil price volatility on food price. The model also allows the oil price uncertainty to be measured as the conditional standard deviation of a one-step-ahead forecast error of the change in oil price. The results show that oil price uncertainty has a positive and significant effect on food price in South Africa. The responses of food price to a positive and negative oil price shocks is asymmetric. }, journal = {International Journal of Economics and Management Engineering}, volume = {9}, number = {5}, year = {2015}, pages = {1380 - 1385}, ee = {https://publications.waset.org/pdf/10001097}, url = {https://publications.waset.org/vol/101}, bibsource = {https://publications.waset.org/}, issn = {eISSN: 1307-6892}, publisher = {World Academy of Science, Engineering and Technology}, index = {Open Science Index 101, 2015}, }