Maize Market Liberalisation in Benin: A Case of Hysteresis

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Periodical article

Title:	Maize Market Liberalisation in Benin: A Case of Hysteresis
Authors:	Lutz, Clemens Kuiper, W. Erno Tilburg, Aad van
Year:	2007
Periodical:	Journal of African Economies
Volume:	16
Issue:	1
Period:	January
Pages:	102-133
Language:	English
Geographic term:	Benin
Subjects:	maize grain market grain prices structural adjustment Economics and Trade Agriculture, Natural Resources and the Environment Development and Technology
External link:	https://jae.oxfordjournals.org/content/16/1/102.full.pdf
Abstract:	This article analyses the effect of 10 years of liberalization policy on price integration in Benin's maize market. The comparison of price series for two periods, before and after the policy change, shows that the expected positive effect is not confirmed by cointegration analysis. Though markets were, and are, integrated in the long run, the sluggish speed of adjustment has not improved, which is why observed price differences between market places are often larger than marketing costs can justify. The article concludes that the liberalization policies did not significantly affect maize market integration and that, therefore, more effective policy instruments are required in order to strengthen the competitive forces in the market. Bibliogr., notes, ref., sum. [Journal abstract]