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Periodical article | Leiden University catalogue | WorldCat |
Title: | Spatial Equilibrium of Wheat Markets in Ethiopia |
Author: | Getnet, Kindie |
Year: | 2007 |
Periodical: | African Development Review |
Volume: | 19 |
Issue: | 2 |
Period: | September |
Pages: | 281-303 |
Language: | English |
Geographic term: | Ethiopia |
Subjects: | agricultural market wheat grain prices Agriculture, Natural Resources and the Environment Economics and Trade |
External link: | https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2007.00162.x/pdf |
Abstract: | Knowledge about the extent to which spatial markets are integrated is useful to assess the impact of liberalization policies on the performance of agricultural markets in the developing countries. In turn, this would help to guide subsequent interventions aimed at improving the performance of markets. Cointegration techniques provide an analytical framework to know whether markets are integrated, by making it possible to investigate the existence and magnitude of price transmission between spatial markets. This study tries to analyse the spatial equilibrium of wheat markets in Ethiopia by employing an autoregressive distributed-lag modelling approach to cointegration analysis on wheat prices observed during the post-liberalization period (1996-2000) for the central wholesale market (Addis Ababa) and for a local market (Ambo). The major finding of a stable equilibrium relationship between the price series considered provides evidence of market integration. Since intervention in local markets is generally costly and less effective, the result suggests the possibility of targeting intervention at the central wholesale market level with the objective of influencing price dynamics in the local markets. App., bibliogr., notes, ref., sum. [Journal abstract] |