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Price Signals and Supply Responses for Staple Food Crops in Sub-Saharan Africa

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  • Emiliano Magrini
  • Jean Balié
  • Cristian Morales-Opazo

Abstract

We investigate the supply response for main staple food crops in Sub-Saharan Africa over the period 2005−2013 using an innovative dataset recently developed by FAO’s “Monitoring and Analysing Food and Agricultural Policies” (MAFAP) programme. Relying on dynamic panel techniques, we observe that acreage, production and yields respond to price signals, even if with a limited intensity. Moreover, we find that direct price incentives arising from border protection, government interventions in domestic markets, and price shocks at the border stimulate farmers’ supply. We also show that omitting transaction costs from the analysis leads to underestimation of the price elasticity of supply. Conversely, using wholesale instead of farm gate prices as proxy for producer prices leads to overestimation of this price elasticity.

Suggested Citation

  • Emiliano Magrini & Jean Balié & Cristian Morales-Opazo, 2018. "Price Signals and Supply Responses for Staple Food Crops in Sub-Saharan Africa," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 276-296.
    • Handle: RePEc:oup:apecpp:v:40:y:2018:i:2:p:276-296.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppx037
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    Cited by:

    1. Kwaw-Nimeson, Enoch & Tian, Ze, 2021. "The impact of agricultural producer price on sustainable food security in Africa – a system GMM approach," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(3), September.
    2. Anbes Tenaye, 2020. "New Evidence Using a Dynamic Panel Data Approach: Cereal Supply Response in Smallholder Agriculture in Ethiopia," Economies, MDPI, vol. 8(3), pages 1-24, July.
    3. Xiaoyu Sun & Xiaoli Yang & Ruilong Zhang, 2022. "The Determinants of Grape Storage: Evidence from Grape Growers in China," Agriculture, MDPI, vol. 12(12), pages 1-14, December.
    4. Hertel, By Thomas W. & Baldos, Uris L.C. & Fuglie, Keith O., 2020. "Trade in technology: A potential solution to the food security challenges of the 21st century," European Economic Review, Elsevier, vol. 127(C).
    5. Krah, Kwabena, 2023. "Maize price variability, land use change, and forest loss: evidence from Ghana," Land Use Policy, Elsevier, vol. 125(C).
    6. Porteous, Obie, 2020. "Trade and agricultural technology adoption: Evidence from Africa," Journal of Development Economics, Elsevier, vol. 144(C).

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