Evaluating the effectiveness of inter-regional trade and storage in Malawi’s private sector maize markets
This paper evaluates the effectiveness of the private sector maize marketing system in Malawi using threshold autoregression models. Two dimensions of maize market performance are evaluated: (1) inter-regional trade and spatial price transmission; and (2) storage and seasonal price relationships. In both cases, threshold autoregression models which account for nonlinearities predicted by economic theory are applied. Results indicate that spatial price transmission and seasonal price patterns in private sector maize markets in Malawi are generally consistent with long-run competitive inter-regional trade and storage behavior, and that in most cases shocks to long-run equilibrium are arbitraged away quickly. This suggests the private sector in Malawi is generally doing a good job of transporting maize from surplus to deficit regions and smoothing maize consumption between harvests.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pinckney, Thomas C., 1993. "Is market liberalization compatible with food security? : Storage, trade and price policies for maize in Southern Africa," Food Policy, Elsevier, vol. 18(4), pages 325-333, August.
- Bruce E. Hansen, 1996.
"Sample Splitting and Threshold Estimation,"
Boston College Working Papers in Economics
319., Boston College Department of Economics, revised 12 May 1998.
- Alderman, Harold, 1993.
"Intercommodity Price Transmittal: Analysis of Food Markets in Ghana,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 55(1), pages 43-64, February.
- Alderman, Harold, 1992. "Intercommodity price transmittal : analysis offood markets in Ghana," Policy Research Working Paper Series 884, The World Bank.
- Sarno, Lucio & Taylor, Mark P. & Chowdhury, Ibrahim, 2004.
"Nonlinear dynamics in deviations from the law of one price: a broad-based empirical study,"
Journal of International Money and Finance,
Elsevier, vol. 23(1), pages 1-25, February.
- Chowdhury, Ibrahim & Sarno, Lucio & Taylor, Mark P, 2002. "Non-Linear Dynamics in Deviations from the Law of One Price: A Broad-Based Empirical Study," CEPR Discussion Papers 3377, C.E.P.R. Discussion Papers.
- Williams,Jeffrey C. & Wright,Brian D., 1991.
"Storage and Commodity Markets,"
Cambridge University Press, number 9780521326162, November.
- Ng, S., 1995.
"Looking for Evidence of Speculative Stockholding in Commodity Markets,"
Cahiers de recherche
9514, Universite de Montreal, Departement de sciences economiques.
- Ng, Serena, 1996. "Looking for evidence of speculative stockholding in commodity markets," Journal of Economic Dynamics and Control, Elsevier, vol. 20(1-3), pages 123-143.
- Ng, S., 1995. "Looking for Evidence of Speculative Stockholding in Commodity Markets," Cahiers de recherche 9514, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Balke, Nathan S. & Fomby, Thomas B., 1992.
9209, Federal Reserve Bank of Dallas.
- Goodwin, Barry K. & Piggott, Nicholas E., 1999.
"Spatial Market Integration In The Presence Of Threshold Effects,"
1999 Annual meeting, August 8-11, Nashville, TN
21489, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Barry K. Goodwin & Nicholas E. Piggott, 2001. "Spatial Market Integration in the Presence of Threshold Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 302-317.
- Alan M. Taylor, 2000.
"Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price,"
NBER Working Papers
7577, National Bureau of Economic Research, Inc.
- Taylor, Alan M, 2001. "Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price," Econometrica, Econometric Society, vol. 69(2), pages 473-98, March.
- Van Campenhout, Bjorn, 2007.
"Modelling trends in food market integration: Method and an application to Tanzanian maize markets,"
Elsevier, vol. 32(1), pages 112-127, February.
- van Campenhout, Bjorn, 2005. "Modelling Trends in Food Market Integration: Method and an Application to Tanzanian Maize Markets," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24718, European Association of Agricultural Economists.
- Hansen, Bruce E, 1996.
"Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis,"
Econometric Society, vol. 64(2), pages 413-30, March.
- Hansen, B.E., 1991. "Inference when a Nuisance Parameter is Not Identified Under the Null Hypothesis," RCER Working Papers 296, University of Rochester - Center for Economic Research (RCER).
- Tom Doan, . "RATS programs to replicate Hansen's threshold estimation and testing results," Statistical Software Components RTZ00091, Boston College Department of Economics.
- Tom Doan, . "TAR: RATS procedure to estimate a threshold autoregression, tests for threshold effect," Statistical Software Components RTS00209, Boston College Department of Economics.
- Asfaw Negassa & Robert J. Myers, 2007. "Estimating Policy Effects on Spatial Market Efficiency: An Extension to the Parity Bounds Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 338-352.
- Seong, Byeongchan & Mahbub Morshed, A.K.M. & Ahn, Sung K., 2006. "Additional sources of bias in half-life estimation," Computational Statistics & Data Analysis, Elsevier, vol. 51(3), pages 2056-2064, December.
- Dana, Julie & Gilbert, Christopher L. & Shim, Euna, 2006. "Hedging grain price risk in the SADC: Case studies of Malawi and Zambia," Food Policy, Elsevier, vol. 31(4), pages 357-371, August.
- Harrigan, Jane, 2003. "U-Turns and Full Circles: Two Decades of Agricultural Reform in Malawi 1981-2000," World Development, Elsevier, vol. 31(5), pages 847-863, May.
- Bruce L. Gardner & Ramón López, 1996.
"The Inefficiency of Interest-Rate Subsidies in Commodity Price Stabilization,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 78(3), pages 508-516.
- Gardner, Bruce L. & Lopez, Ramon, 1993. "The Inefficiency of Interest Rate Subsidies in Commodity Price Stabilization," Working Papers 197794, University of Maryland, Department of Agricultural and Resource Economics.
- Goletti, Francesco & Babu, Suresh, 1994. "Market liberalization and integration of maize markets in Malawi," Agricultural Economics, Blackwell, vol. 11(2-3), pages 311-324, December.
- Abdulai, Awudu, 2000. "Spatial price transmission and asymmetry in the Ghanaian maize market," Journal of Development Economics, Elsevier, vol. 63(2), pages 327-349, December.
- Colin A. Carter & Cesar L. Revoredo Giha, 2007. "The Working Curve and Commodity Storage under Backwardation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 864-872.
- Jayne, Thomas S. & Sitko, Nicholas J. & Ricker-Gilbert, Jacob & Mangisoni, Julius H., 2010. "Malawi’s Maize Marketing System," Food Security Collaborative Working Papers 62162, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Goletti, Francesco & Babu, Suresh Chandra, 1994. "Market liberalization and integration of maize markets in Malawi," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 11(2-3), December.
When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:41:y:2013:i:c:p:75-84. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.