Cross country maize market linkages in Africa: integration and price transmission across local and global markets

In order to study short‐run price shock propagation, we model twenty seven Sub‐Saharan Africa (SSA) domestic maize markets within a Global Vector Autoregression framework. The main purpose is to fully embed multilateral trade flows as a way to better structure local price transmission dynamics and i...

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Bibliographic Details
Published inAgricultural economics Vol. 50; no. 1; pp. 79 - 90
Main Authors Pierre, Guillaume, Kaminski, Jonathan
Format Journal Article
LanguageEnglish
Published Malden Wiley Subscription Services, Inc 01.01.2019
Subjects
Agricultural economics
Agricultural trade
C13
C15
C32
Corn
Economic conditions
Economic models
Global marketing
Global VAR
Integration
maize market
Market integration
Price transmission
Propagation
Q10
Q11
Sub-Saharan Africa
Africa
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Summary:In order to study short‐run price shock propagation, we model twenty seven Sub‐Saharan Africa (SSA) domestic maize markets within a Global Vector Autoregression framework. The main purpose is to fully embed multilateral trade flows as a way to better structure local price transmission dynamics and interdependencies, and get a more comprehensive picture of food price shocks propagation. We found significant between‐country market contagion and prompt regional price shock propagation when trade connection exists. Yet, the integration of SSA domestic maize markets within the continent and with global markets remains generally weak. Furthermore, under regular market conditions, most local price series appear to be more responsive to regional neighbors than to global shocks.
ISSN:0169-5150
1574-0862
DOI:10.1111/agec.12467