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Price transmission and adjustment in the Ethiopian coffee market

Author

Listed:
  • Alemu, Z.G.
  • Worako, T.K.

Abstract

This study analysed the interrelationships among producer, auction and world prices. In so doing, it criticised previous studies and extended a technique developed by Hansen (1999) to handle inferential biases due to some specification errors. The results indicated that coffee growers benefit little from positive changes in the world price compared with participants in the auction markets. This is attributed to the presence of information asymmetry in the coffee value chain, created by an increased concentration of markets. In addition, domestic markets could play a role in this, as they are major outlets for the majority of the coffee produced.

Suggested Citation

  • Alemu, Z.G. & Worako, T.K., 2011. "Price transmission and adjustment in the Ethiopian coffee market," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 50(2), September.
    • Handle: RePEc:ags:agreko:347270
    DOI: 10.22004/ag.econ.347270
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    Keywords

    Agribusiness;

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