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The Contribution of Agricultural Economics to Price transmission Analysis and Market Policy in Sub-Sahara Africa: What Does the Literature Say?

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  • Amikuzuno, Joseph
  • Ogundari, Kolawole

Abstract

Price transmission studies have become increasingly important in Sub Sahara Africa over the last two decades because of their application in assessing the impact of the market reforms policies embarked upon by the region’s governments between the mid 1980s and early 1990s. In this study, a meta database obtained from 45 price transmission studies published between 1978 and 2011, is used to provide an overall assessment of the potential impact of selected, study-specific attributes on estimated price transmission coefficients and in identifying asymmetric price transmission. Despite the large dispersion of estimated price transmission coefficients 2.5% - 94.2%, the mean coefficient of 32.2% is an overall assessment that the extent of price transmission in SSA is comparatively low. The predicted impacts of the study-specific attributes on the price transmission coefficients, and on the likelihood of the primary studies to report asymmetric price transmission however differ consistently across the attributes, and provide in general evidence on the critical role such attributes play in determining price transmission results and their implications for policy formulation. Therefore, future research on price transmission should carefully account for the impact of study-specific attributes in their results.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aesc12:134754
    DOI: 10.22004/ag.econ.134754
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    3. Ogundari, Kolawole & Abdulai, Awudu, 2012. "A meta-analysis of the response of calorie demand to income changes," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123287, International Association of Agricultural Economists.
    4. Abunyuwah, Isaac, 2013. "Implications of conceptual and data complexities on time-series econometric applications in market integration analysis," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 115(1), pages 1-7, February.
    5. Braha, Kushtrim & Rajcaniova, Miroslava & Qineti, Artan, 2015. "Spatial Price Transmission and Food Security: The case of Kosovo," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207843, Italian Association of Agricultural and Applied Economics (AIEAA).

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