Go to AfricaBib home

Go to AfricaBib home AfricaBib Go to database home

bibliographic database
Previous page New search

The free AfricaBib App for Android is available here

Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Commodity-specific spatial integration: inter-commodity integration and substitution between maize and sorghum in Ghana
Author:Adom, Philip Kofi
Periodical:Ghanaian journal of economics: a journal of the African Finance and Economics Consult (ISSN 2309-8945)
Geographic term:Ghana
agricultural market
External link:https://hdl.handle.net/10520/EJC169146
Abstract:The main objectives of the study are: (1) to test for spatial integration of sorghum and maize: (2) to test inter-commodity integration, and (3) to test the existence and extent of substitution between sorghum and maize. The study, conducted in Ghana, used monthly real prices of sorghum and maize from 2006 to 2013. The Johansen approach is used to test for specific commodity spatial integration whilst the Bounds approach is used to test inter-commodity integration and substitution between sorghum and maize. The result shows that the sorghum and maize markets are spatially integrated. The authors found multiple market leaders both in the sorghum and maize markets, and that indicates simultaneous determination of prices in these markets. While the sorghum market provides arbitrage opportunities, the authors found that arbitrage opportunities in the maize market depend on the trade network established. The result also confirms the existence of inter-commodity integration both in the long-run and short-run. Estimated half-life persistence indicators shows that markets are integrated to different degrees. Lastly, the result shows significant short-run and long-run substitution between sorghum and maize, but this is not perfect. Bibliogr., notes, sum. [Journal abstract]