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The Effect of Liberalization on Grain Prices and Marketing Margins in Ethiopia

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  • Jayne, Thomas S.
  • Negassa, Asfaw
  • Myers, Robert J.

Abstract

This report analyzes the effects of grain market reform in Ethiopia on grain prices and price spreads between major wholesale markets. The experience of Ethiopia during the 1990s represents a case in which a relatively consistent and internally-driven program of grain market liberalization has been pursued with the general approval of international lenders and donors. The state marketing board, while not abolished, has been substantially downsized and has become a marginal actor in the current grain marketing system. Hence, the case of Ethiopia between 1990 and 1997 may constitute a particularly important test of the hypothesis expressed by reform advocates that the removal of regulatory constraints on private trade and the transition to a market-oriented system would reduce grain marketing costs and pass along benefits to both farmers and consumers.

Suggested Citation

  • Jayne, Thomas S. & Negassa, Asfaw & Myers, Robert J., 1998. "The Effect of Liberalization on Grain Prices and Marketing Margins in Ethiopia," Food Security International Development Working Papers 54681, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midiwp:54681
    DOI: 10.22004/ag.econ.54681
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    References listed on IDEAS

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    Cited by:

    1. Minten, Bart & Stifel, David & Tamru, Seneshaw, 2012. "Structural Transformation in Ethiopia: Evidence from Cereal Markets," ESSP research notes 14, International Food Policy Research Institute (IFPRI).
    2. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
    3. Narayanan, Sudha & Gulati, Ashok, 2002. "Globalization and the smallholders," MSSD discussion papers 50, International Food Policy Research Institute (IFPRI).
    4. Kodama, Yuka, 2012. "Young women's economic daily lives in rural Ethiopia," IDE Discussion Papers 344, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Gebreselassie Fanta, Elias, 2006. "Does value addition at oilseed production and/ or spreading the gain from export of oilseed products increase the income of primary producers?," IEE Working Papers 183, Ruhr University Bochum, Institute of Development Research and Development Policy (IEE).
    6. Quattri, Maria A. & Ozanne, Adam & Wang, Xioabing & Hall, Alastair R., 2011. "On The Role Of The Brokerage Institution In The Development Of Ethiopian Agricultural Markets," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108941, Agricultural Economics Society.
    7. Tanguy Bernard & Alemayehu Seyoum Taffesse & Eleni Gabre‐Madhin, 2008. "Impact of cooperatives on smallholders' commercialization behavior: evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 147-161, September.
    8. Takamasa Akiyama & John Baffes & Donald Larson & Panos Varangis, 2001. "Commodity Market Reforms : Lessons of Two Decades," World Bank Publications - Books, The World Bank Group, number 13852, December.

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