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Regional price transmission in Southern African maize markets

Author

Listed:
  • Davids, T.
  • Schroeder, K.
  • Meyer, F.H.
  • Chisanga, B.

Abstract

In light of the importance of maize as a staple crop in Southern Africa, as well as its prioritisation from a policy perspective, this study evaluates the extent of price transmission between selected maize markets in the region. It employs secondary data of weekly white maize prices in seven markets in the region to quantify the long and short run price relationships between relevant markets based on geographic proximity and expected trade patterns. While several authors have noted the isolation of white maize markets in Southern Africa from the global market, this study finds evidence of co-integration between multiple maize markets within the Southern African region. By implication, policy decisions affecting prices in any single country will influence price levels in multiple surrounding markets, impacting on both producer and consumer welfare not only in the country of application but also in the region as a whole.

Suggested Citation

  • Davids, T. & Schroeder, K. & Meyer, F.H. & Chisanga, B., 2016. "Regional price transmission in Southern African maize markets," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249292, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:249292
    DOI: 10.22004/ag.econ.249292
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    References listed on IDEAS

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    7. Porteous, Obie, 2017. "Empirical effects of short-term export bans: The case of African maize," Food Policy, Elsevier, vol. 71(C), pages 17-26.
    8. Traub, Lulama Ndibongo & Myers, Robert J. & Jayne, Thomas S. & Meyer, Ferdinand H., 2010. "Measuring Integration and Efficiency in Maize Grain Markets: The Case of South Africa and Mozambique," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96644, African Association of Agricultural Economists (AAAE).
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    Cited by:

    1. Meizal Popat & Garry Griffith & Stuart Mounter & Oscar Cacho, 2022. "Infrastructure investments, regional trade agreements and agricultural market integration in Mozambique," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 9-22, February.
    2. Davids, T. & Meyer, F. & Westhoff, P., 2018. "Quantifying the regional impact of export controls in Southern African maize markets," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277353, International Association of Agricultural Economists.
    3. Davids, Tracy & Meyer, Ferdi & Westhoff, Patrick, 2017. "Impact of trade controls on price transmission between southern African maize markets," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 56(3), July.

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