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The Effects of Maize Trade with Malawi on Price Levels in Mozambique: Implications for Trade and Development Policy

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  • Tschirley, David L.
  • Santos, Ana Paula

Abstract

This paper analyzes the effects of the opening of trade with Malawi on producer and consumer prices in Mozambique. It finds that prices were positively and significantly affected by this trade in the north of the country, where agroecological potential is greatest and rural population densities are highest. Prices in the main urban centers of the south and center were unaffected. Overall, most producers benefited from the trade while most consumers were not affected. The paper concludes that Mozambique should lobby aggressively for open trade in maize within the SADC Trade Protocol. It suggests, however, that the country must look beyond Malawi in developing its export markets, and that the SADC region is likely to provide a market for exports during most years. Finally, it emphasizes that efforts to intensify maize production are likely to fail in the absence of such trade, so that initiatives to deal with the institutional and technical challenges of intensification must be pursued in the context of developing these regional markets.

Suggested Citation

  • Tschirley, David L. & Santos, Ana Paula, 1999. "The Effects of Maize Trade with Malawi on Price Levels in Mozambique: Implications for Trade and Development Policy," Food Security Collaborative Working Papers 56032, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:56032
    DOI: 10.22004/ag.econ.56032
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    References listed on IDEAS

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    1. Unknown, 1993. "The Maputo Market Study: Research Methods," Food Security Collaborative Working Papers 55997, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Santos, Ana Paula & Tschirley, David L., 1999. "The Effects of Maize Trade with Malawi on Price Levels in Mozambique: Implications for Trade and Development Policy," Food Security Collaborative Policy Briefs 55213, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Haggblade, Steven & Hazell, Peter & Brown, James, 1989. "Farm-nonfarm linkages in rural sub-Saharan Africa," World Development, Elsevier, vol. 17(8), pages 1173-1201, August.
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    Citations

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    Cited by:

    1. Tschirley, David L. & Abdula, Danilo Carimo & Weber, Michael T., 2006. "Toward Improved Maize Marketing and Trade Policies to Promote Household Food Security in Central and Southern Mozambique," Food Security Collaborative Working Papers 56065, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    3. Mather, David & de Marrule, Higino Francisco & Donovan, Cynthia & Weber, Michael T. & Alage, Albertina, 2004. "Analysis of Adult Mortality Within Rural Households in Mozambique and Implication For Policy," Food Security Collaborative Policy Briefs 55239, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Tony Addison, 2005. "Agricultural Development for Peace," WIDER Working Paper Series RP2005-07, World Institute for Development Economic Research (UNU-WIDER).
    5. Santos, Ana Paula & Tschirley, David L., 1999. "The Effects of Maize Trade with Malawi on Price Levels in Mozambique: Implications for Trade and Development Policy," Food Security Collaborative Policy Briefs 55213, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. João Mosca, 2014. "Agricultura familiar em Moçambique: Ideologias e políticas," CEsA Working Papers 127, CEsA - Centre for African and Development Studies.
    7. Benfica, Rui M.S. & Tschirley, David L. & Sambo, Liria, 2002. "The Impact of Alternative Agro-Industrial Investments on Poverty Reduction in Rural Mozambique," Food Security Collaborative Working Papers 56055, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Emílio Tostão & B. Wade Brorsen, 2005. "Spatial price efficiency in Mozambique's post‐reform maize markets," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 205-214, September.
    9. Walker, Thomas S. & Tschirley, David L. & Low, Jan W. & Tanque, M. Pequentino & Boughton, Duncan & Payongayong, Ellen M. & Weber, Michael T., 2004. "Determinants of Rural Income, Poverty, and Perceived Well-Being in Mozambique in 2001-2002," Food Security Collaborative Working Papers 56061, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Cunguara, Benedito & Darnhofer, Ika, 2011. "Assessing the impact of improved agricultural technologies on household income in rural Mozambique," Food Policy, Elsevier, vol. 36(3), pages 378-390, June.
    11. Tschirley, David L. & Abdula, Danilo Carimo, 2007. "Toward Improved Marketing and Trade Policies to Promote Household Food Security in Central and Southern Mozambique: 2007 Update," Food Security Collaborative Working Papers 56068, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Tilman Bruck, "undated". "Determinants of Rural Poverty in Post-War Mozambique: Evidence from a Household Survey and Implications for Government and Donor Policy," QEH Working Papers qehwps67, Queen Elizabeth House, University of Oxford.
    13. Meizal Popat & Garry Griffith & Stuart Mounter & Oscar Cacho, 2022. "Infrastructure investments, regional trade agreements and agricultural market integration in Mozambique," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 9-22, February.

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