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Marketing policy reform and competitiveness

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  • Badiane, Ousmane

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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Bibliographic Info

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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Cited by:
  1. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MTID discussion papers 45, International Food Policy Research Institute (IFPRI).
  2. 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).
    • 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).
  3. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MTID discussion papers 46, International Food Policy Research Institute (IFPRI).
  4. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
  5. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MSSD discussion papers 47, International Food Policy Research Institute (IFPRI).
  6. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MSSD discussion papers 51, International Food Policy Research Institute (IFPRI).

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