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Spatial Integration of Maize Markets in Post-liberalised Uganda

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  • Shahidur Rashid

Abstract

Using weekly price data for two sub-periods, this paper analyses how Ugandan maize markets performed in the years following agricultural market liberalisation in the early 1990s. For each time period, the extent of integration, causality among spatial locations and relative importance of spatial locations in price formation are examined. The extent of integration, defined as a set of markets that shares common long-run price information, and the causal relationships among markets have been tested within Johansen's cointegration framework. The relative importance of each market locations is examined by estimating the common trend coefficients with a dynamic vector moving average model. Results indicate that, while there has been an overall improvement in spatial price responsiveness, the northern districts, which have been in a state of insurgency since 1986, continue to lack integration with major consumption markets in the central region. Causality test results show that, compared with the 1993--4 time period, representing the early years of liberalisation, interdependence among markets has increased. Estimates of the common integrating trend suggest that public policies, such as price stabilisation, can have desired impacts by targeting a small number of locations. These results are consistent with recently conducted household and market surveys in the country. Copyright 2004, Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 13 (2004)
Issue (Month): 1 (March)
Pages: 102-133

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Handle: RePEc:oup:jafrec:v:13:y:2004:i:1:p:102-133

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References

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Cited by:
  1. Rashid, Shahidur, 2011. "Intercommodity price transmission and food price policies: An analysis of Ethiopian cereal markets," ESSP working papers 22, International Food Policy Research Institute (IFPRI).
  2. Varela, Gonzalo & Aldaz-Carroll, Enrique & Iacovone, Leonardo, 2012. "Determinants of market integration and price transmission in Indonesia," Policy Research Working Paper Series 6098, The World Bank.
  3. repec:ags:mididp:152396 is not listed on IDEAS
  4. Katengeza, Samson P. & Mangisoni, Julius H. & Okello, Julius Juma, 2010. "The Role of ICT-based Market Information Services in Spatial Food Market Integration: The Case of Malawi Agricultural Commodity Exchange," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96170, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
  5. Amikuzuno, Joseph, 2010. "Spatial Price Transmission Analysis in Agricultural Markets: Does the Data Frequency Improve our Estimation?," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96167, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
  6. Rashid, Shahidur, 2011. "Intercommodity price transmission and food price policies: An analysis of Ethiopian cereal markets," IFPRI discussion papers 1079, International Food Policy Research Institute (IFPRI).
  7. Amikuzuno, Joseph & Ogundari, Kolawole, 2012. "The Contribution of Agricultural Economics to Price transmission Analysis and Market Policy in Sub-Sahara Africa: What Does the Literature Say?," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134754, Agricultural Economics Society.
  8. Jayasuriya, Sisira & Kim, Jae H. & Kumar, Parmod, 2007. "International and Internal Market Integration in Indian agriculture: A study of the Indian Rice Market," 106th Seminar, October 25-27, 2007, Montpellier, France 7935, European Association of Agricultural Economists.
  9. Sanogo, Issa, 2008. "SPATIAL integration of the rice market: emprirical evidence from mid-west and far-west Nepal and the Nepalese-Indian border," MPRA Paper 14488, University Library of Munich, Germany.
  10. Mezgebo, Taddese, 2009. "A multivariate approach for identification of optimal locations with in Ethiopia’s wheat market to tackle soaring inflation on food price (Extended version)," MPRA Paper 17960, University Library of Munich, Germany.
  11. Varela, Gonzalo J., 2012. "Incomplete, slow, and asymmetric price transmission in ten product markets of Bolivia," Policy Research Working Paper Series 6291, The World Bank.
  12. Kizito, Andrew M. & Donovan, Cynthia & Staatz, John M., 2012. "Impact of Agricultural Market Information Systems Activities on Market Performance in Mozambique: Mozambique Country Report," Food Security International Development Working Papers 169572, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  13. Sanogo, Issa, 1. "Spatial Integration of the Rice Market: Empirical Evidence from Mid-west and Far-west Nepal, and the Nepalese-Indian Border," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 3(1).
  14. Tschirley, David L. & Jayne, T.S., 2010. "Exploring the Logic Behind Southern Africa's Food Crises," World Development, Elsevier, vol. 38(1), pages 76-87, January.
  15. Ole Boysen, 2009. "Border Price Shocks, Spatial Price Variation, and their Impacts on Poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp306, IIIS.
  16. Staatz, John M. & Kizito, Andrew M. & Weber, Michael T. & Dembele, Niama Nango, 2011. "Evaluating the Impact on Market Performance of Investments in Market Information Systems: Methodological Challenges," Staff Papers 108184, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  17. Van Campenhout, Bjorn, 2007. "Modelling trends in food market integration: Method and an application to Tanzanian maize markets," Food Policy, Elsevier, vol. 32(1), pages 112-127, February.
  18. Tschirley, David L. & Jayne, Thomas S., 2008. "Food Crises and Food Markets: Implications for Emergency Response in Southern Africa," Food Security International Development Policy Syntheses 54508, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  19. Ricker-Gilbert, Jacob & Mason, Nicole & Jayne, Thomas & Darko, Francis Addeah & Tembo, Solomon, 2013. "What are the effects of input subsidy programs on equilibrium maize prices? Evidence from Malawi and Zambia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149259, Agricultural and Applied Economics Association.
  20. Mezgebo, Taddese, 2009. "A multivariate approach for identification of optimal locations with in Ethiopia’s wheat market to tackle soaring inflation on food price," MPRA Paper 18663, University Library of Munich, Germany.
  21. Kelbore, Zerihun Getachew, 2013. "Transmission of World Food Prices to Domestic Market: The Ethiopian Case," MPRA Paper 49712, University Library of Munich, Germany.
  22. Raghbendra Jha & K.V. Bhanu Murthy & Anurag Sharma, 2005. "Market Integration in Wholesale Rice Markets in India," ASARC Working Papers 2005-03, The Australian National University, Australia South Asia Research Centre.

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