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Global price transmission in Senegal’s groundnut markets: can smallholders benefit from high international prices?

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  • Tankari, Mahamadou Roufahi

Abstract

In this paper, we seek to know whether the smallholders in Senegal can benefit from the high world prices. By means of Enders and Siklos (2001) approach, we analyzed the asymmetry of price transmission from the global market to the Dakar market which is the central market in Senegal. Moreover, the transmission from the central market to the local markets is studied. Our findings show that the groundnuts national central market is not integrated to the international market. Otherwise, the transmission between the central market and local markets of groundnuts is symmetric. Furthermore, it takes two months for a shock to be fully transmitted to local markets. Thus, it will be possible for the smallholders to benefit from the high world groundnut prices as the local markets and the central market are well integrated if this later and the international one are integrated.

Suggested Citation

  • Tankari, Mahamadou Roufahi, 2012. "Global price transmission in Senegal’s groundnut markets: can smallholders benefit from high international prices?," MPRA Paper 53395, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53395
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    File URL: https://mpra.ub.uni-muenchen.de/53395/2/MPRA_paper_53395.pdf
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    References listed on IDEAS

    as
    1. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    2. Enders, Walter & Granger, Clive W J, 1998. "Unit-Root Tests and Asymmetric Adjustment with an Example Using the Term Structure of Interest Rates," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(3), pages 304-311, July.
    3. Enders, Walter & Siklos, Pierre L, 2001. "Cointegration and Threshold Adjustment," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(2), pages 166-176, April.
    4. Daniel Hassan & Michel Simioni, 2004. "Transmission des prix dans la filière des fruits et légumes: une application des tests de cointégration avec seuils," Économie rurale, Programme National Persée, vol. 283(1), pages 27-46.
    5. Badiane, Ousmane & Ulimwengu, John M. & Wouterse, Fleur, 2010. "Spatial price transmission and market integration in Senegal’s groundnut market," IFPRI discussion papers 1014, International Food Policy Research Institute (IFPRI).
    6. Minot, Nicholas, 2010. "Transmission of World Food Price Changes to African Markets and its Effect on Household Welfare," Food Security Collaborative Working Papers 58563, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. T.G. Saji, 2018. "Price transmission for natural rubber: India integration with world markets," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(617), W), pages 155-168, Winter.

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    More about this item

    Keywords

    Groundnut; Global market; national markets; smallholders; asymmetry of price transmission;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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