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Market Integration and Spatial Price Transmission in Niger Grain Markets

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  • Seydou Zakari
  • Liu Ying
  • Baohui Song

Abstract

This paper investigates price transmission from international and regional markets to Niger domestic grain markets using monthly wholesale prices. Cointegration and error correction models were employed to analyze the degree of price transmission. Tests of causality were also performed. In general, the results showed that grain markets in Niger respond to negative and positive shocks in regional and international markets differently. Maize and rice markets have high speed of adjustments to world prices compared to millet and sorghum markets. The speed of adjustment of prices to the long‐run equilibrium varies between 30 percent, 35 percent, 48 percent and 40 percent respectively for millet, sorghum, maize and rice prices. Nigeria, Burkina‐Faso, Mali, Togo and Vietnam markets have shown significant transmission in Niger markets. Supply and demand shocks in these markets will definitely affect Niger food prices. Based on this analysis, we suggest that Niger should develop a proper trade policy with its neighboring countries to facilitate regional market integration. This will enable Niger to import cereals from regional surplus‐producing areas to supply its food shock regions to reduce the negative impacts of price shocks on households. For rice, Niger should encourage local production to limit high dependence on international markets.

Suggested Citation

  • Seydou Zakari & Liu Ying & Baohui Song, 2014. "Market Integration and Spatial Price Transmission in Niger Grain Markets," African Development Review, African Development Bank, vol. 26(2), pages 264-273, June.
    • Handle: RePEc:bla:afrdev:v:26:y:2014:i:2:p:264-273
    DOI: 10.1111/1467-8268.12080
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    2. Xinru Miao & Shaopeng Wang & Jiqin Han & Zhaoyi Ren & Teng Ma & Henglang Xie, 2024. "The Regional Heterogeneity of the Impact of Agricultural Market Integration on Regional Economic Development: An Analysis of Pre-COVID-19 Data in China," Sustainability, MDPI, vol. 16(5), pages 1-33, February.
    3. Mahamadou Roufahi Tankari & Anatole Goundan, 2018. "Nontraded food commodity spatial price transmission: evidence from the Niger millet market," Agricultural Economics, International Association of Agricultural Economists, vol. 49(2), pages 147-156, March.
    4. Sakurai, Takeshi & Ralandison, Tsilavo & Takahashi, Kazushi & Arimoto, Yutaka & Kono, Hisaki, 2015. "Is there any premium for unobservable quality? : a hedonic price analysis of the Malagasy rice market," IDE Discussion Papers 504, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Kayenat Kabir & Uris Lantz C. Baldos & Thomas W. Hertel, 2023. "The new Malthusian challenge in the Sahel: prospects for improving food security in Niger," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(2), pages 455-476, April.
    6. Obetta, A. E. & Achike, A. I., 2023. "Analysis of Price Instability and Determinants of Price Difference of Tomato in Nigeria," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 10(1), June.

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