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Impacts of monetary and macroeconomic factors on food prices in West Africa


  • Kargbo, J.M.


After almost two decades of implementing structural and macroeconomic adjustment programmes, some West African countries continue to experience declining trends in per capita domestic food production, rising food imports and volatile food prices. Real food prices increased up to 7 percent per year during the 1980-1998 period. A vector error correction model was used in investigating the impacts of monetary and macroeconomic factors on food prices during the 1960-1998 period. Food price shocks have significant impacts on domestic food production, and are a major source of macroeconomic instability in West Africa. Trade, exchange rate and monetary policy reforms have significant impacts on food prices and domestic agricultural production. These policies influence consumption patterns, and have serious implications for poverty reduction, food security issues and agricultural growth in Africa.

Suggested Citation

  • Kargbo, J.M., 2005. "Impacts of monetary and macroeconomic factors on food prices in West Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), June.
  • Handle: RePEc:ags:agreko:31697

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    References listed on IDEAS

    1. Chambers, Robert G. & Just, Richard E., 1982. "An investigation of the effect of monetary factors on agriculture," Journal of Monetary Economics, Elsevier, vol. 9(2), pages 235-247.
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    5. Joseph Kargbo, 2000. "Impacts of monetary and macroeconomic factors on food prices in eastern and southern Africa," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1373-1389.
    6. Kargbo, Joseph M., 2003. "Cointegration Tests of Purchasing Power Parity in Africa," World Development, Elsevier, vol. 31(10), pages 1673-1685, October.
    7. Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2004. "A Policy Agenda for Pro-Poor Agricultural Growth," World Development, Elsevier, vol. 32(1), pages 73-89, January.
    8. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, June.
    9. Mike Belongia & Richard A. King, 1983. "A Monetary Analysis of Food Price Determination," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 131-135.
    10. G. Edward Schuh, 1974. "The Exchange Rate and U. S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 1-13.
    11. Dale E. Hathaway, 1974. "Food Prices and Inflation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 5(1), pages 63-116.
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    Cited by:

    1. Asjaha, T.A. & Jooste, Andre, 2007. "The Effect of Monetary Changes on Relative Agricultural Prices," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(4), December.
    2. Adom, Philip Kofi, 2014. "Determinants of food availability and access in Ghana: what can we learn beyond the regression results?," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), December.
    3. Catherine Laroche-Dupraz & Marilyne Huchet-Bourdon & Anned-Linz Senadin, 2012. "Impact du taux de change sur la sécurité alimentaire des pays en développement," Post-Print hal-01208814, HAL.
    4. Ikudayisi, Adesola Adebola & Salman, Kabir Kayode, 3. "Spatial Integration Of Maize Market In Nigeria €“ A Vector Error Correction Model," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3).

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