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Nontraded food commodity spatial price transmission: evidence from the Niger millet market

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  • Mahamadou Roufahi Tankari
  • Anatole Goundan

Abstract

Using an Augmented Factor Vector Autoregressive (FAVAR) Model, this study analyzes spatial millet prices transmission in Niger. Our results did not find condition for millet markets integration existence. However, the Granger causality tests and impulse response functions from the estimated short†term dynamic as FAVAR model revealed the existence of leading markets whose millet prices affect a maximum number of other regional millet prices, while some regions seem to be isolated from trade or information flows. Furthermore, the significance of a shock depends also on the characteristics of the region where it originates in terms of millet demand or supply, indicating that the region to target and where the price shock originated matter for the policies’ success.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:agecon:v:49:y:2018:i:2:p:147-156
    DOI: 10.1111/agec.12404
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    2. Guillaume Pierre & Jonathan Kaminski, 2019. "Cross country maize market linkages in Africa: integration and price transmission across local and global markets," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 79-90, January.
    3. Hailemariam Ayalew & Dagim G. Belay, 2020. "The Ethiopian Commodity Exchange and Spatial Price Dispersion: Disentangling Warehouse and Price Information effects," IFRO Working Paper 2020/01, University of Copenhagen, Department of Food and Resource Economics.
    4. John Baffes & Varun Kshirsagar, 2020. "Shocks to food market systems: A network approach," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 111-129, January.

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