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Marketing policy reform and competitiveness

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Author Info
Badiane, Ousmane

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Abstract

The response of local markets to sectoral and macroeconomic policy changes is a key determinant of the long term impact of policy reforms on reforming economies. In other words, changes in arbitrage costs that are associated with policy reforms as well as the level of integration among local markets exert a strong influence of the economic outcome of reform programs. The objective of this paper is to explore this question theoretically and empirically. A model that can be used to capture the long term process that is involved has been developed and tested using data from Ghana. The model is later applied to analyze the outcomes of further liberalization of groundnut markets in Senegal. The findings highlight the potential cost of failing to pay sufficient attention, when liberalizing domestic markets, to the emergence of a competitive and efficient private distribution sector. The results also indicate that, when state-run processing sectors with monopoly power are involved, effective liberalization of pricing and marketing policies in all likelihood would not yield the anticipated benefits, unless accompanied with efforts to improve productivity and cut unit costs of production in the processing sector.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series MTID discussion papers with number 22.

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Date of creation: 1998
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Handle: RePEc:fpr:mtiddp:22

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Keywords: Markets Prices ; Macroeconomics Models Ghana ;

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  1. Joshi, P.K. & Gulati, Ashok & Birthal, Pratap S. & Tewari, Laxmi, 2003. "Agriculture diversification in South Asia," MSSD discussion papers 57, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Dorosh, Paul A. & Stifel, David & Minten, Bart, 2003. "Transaction costs and agricultural productivity," MSSD discussion papers 56, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MSSD discussion papers 45, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  4. Sharma, Vijay Paul & Gulati, Ashok, 2003. "Trade liberalization, market reforms and competitiveness of Indian dairy sector," MTID discussion papers 61, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MTID discussion papers 46, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  6. Negassa, Asfaw & Myers, Robert & Gabre-Madhin, Eleni Z., 2004. "Grain marketing policy changes and spatial efficiency of maize and wheat markets in Ethiopia," MTID discussion papers 66, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Gopinath, Munisamy & Mullen, Kathleen & Gulati, Ashok, 2004. "Domestic support to agriculture in the European Union and the United States," MTID discussion papers 75, International Food Policy Research Institute (IFPRI). [Downloadable!]
  8. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MTID discussion papers 47, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  9. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MSSD discussion papers 51, International Food Policy Research Institute (IFPRI). [Downloadable!]
  10. Weerahewa, Jeevika, 2004. "Impacts of trade liberalization and market reforms on the rice sector in Sri Lanka," MTID discussion papers 70, International Food Policy Research Institute (IFPRI). [Downloadable!]
  11. Delgado, Christopher & Minot, Nicholas & Tiongco, Marites, 2004. "Evidence and implications of non-tradability of food staples in Tanzania 1983-1998," MTID discussion papers 72, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  12. Fafchamps, Marcel & Gabre-Madhin, Eleni Z. & Minten, Bart, 2003. "Increasing returns and market efficiency in agricultural trade," MTID discussion papers 60, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  13. Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MTID discussion papers 52, International Food Policy Research Institute (IFPRI). [Downloadable!]
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    • Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MSSD discussion papers 52, International Food Policy Research Institute (IFPRI). [Downloadable!]
  14. Jha, Shikha & Srinivasan, P.V., 2004. "Achieving food security in a cost effective way," MTID discussion papers 67, International Food Policy Research Institute (IFPRI). [Downloadable!]
  15. Gabre-Madhin, Eleni Z. & Barrett, Christopher B. & Dorosh, Paul A., 2003. "Technological change and price effects in agriculture," MTID discussion papers 62, International Food Policy Research Institute (IFPRI). [Downloadable!]
  16. Mullen, Kathleen & Sun, Dongsheng & Orden, David & Gulati, Ashok, 2004. "Producer Support Estimates (PSEs) for agriculture in developing countries," MTID discussion papers 74, International Food Policy Research Institute (IFPRI). [Downloadable!]
  17. Ramaswami, Bharat & Birthal, Pratap Singh & Joshi, P.K., 2006. "Efficiency and distribution in contract farming: the case of Indian poultry growers," MTID discussion papers 91, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  18. Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MTID discussion papers 48, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  19. Rashid, Shahidur & Cummings, Ralph Jr. & Gulati, Ashok, 2005. "Grain marketing parastatals in Asia," MTID discussion papers 80, International Food Policy Research Institute (IFPRI). [Downloadable!]
  20. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MTID discussion papers 51, International Food Policy Research Institute (IFPRI). [Downloadable!]
  21. Islam, Nabul, 2003. "Demand projections for poultry products and poultry feeds in Bangladesh," MSSD discussion papers 54, International Food Policy Research Institute (IFPRI). [Downloadable!]
  22. Peterson, Everett B. & Orden, David, 2004. "Effects of tariffs and sanitary barriers on high- and low-value poultry trade," MTID discussion papers 64, International Food Policy Research Institute (IFPRI). [Downloadable!]
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