Spatial Price Transmission of Maize Grain Prices among Markets in Kenya, Tanzania, and Uganda: Evidence from the Nonlinear ARDL Model

Waiswa, Denis

doi:10.36349/easjebm.2023.v06i02.001

Cited by 3 publications

(2 citation statements)

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“…However, recent research has shifted towards advanced econometric techniques and went beyond co-integration and error correction mechanism, like parity-bound models, Auto-regressive Distributed Lag (ARDL), thresholds, asymmetries, and other nonlinear models, enabling rigorous assessment of food market interconnectedness. Minten and Kyle, 2000;Ghosh, 2010;Minten et al, 2014;Sahito, 2017: Svanidze, 2019Waiswa, 2023. This trend reflects an increasing emphasis on robust empirical analysis. Some of the research on food market integration concentrates on specific regions like South Asia, Africa, and North America (e.g., Pakistan, India, the USA, Ghana, Ethiopia, China, etc.…”

Section: Issn (Print): 2959-0027mentioning

confidence: 99%

Beyond Borders: A Review of Food Market Integration and Sustaiable Develomnet Goals

Wagan,

Sahito,

Khooharo

et al. 2024

ABGMCE

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This paper presents a comprehensive review of food market integration research spanning 1990–2023, provides a thorough bibliography, and emphasizes its growth between developed and emerging economies. It evaluates 140 papers with the aim of highlighting the importance of price transmission, market stability and market integration in the food sector. The study provides an overview of econometric methodologies, review global assessment methods, and identifies the major elements that influence market integration, such as commerce, social capital, government interference, export policies, institutions, information, competition, and market power. The finding reveals a rise in research activities between 2000 and 2015, with a growing focus on developing countries. This work is to offer a synopsis to researchers, academicians, and policy makers on the extent of the food market both internationally and domestically. This paper will be helpful for the researchers interested in understanding and investigating the dynamics of food market integration with a useful resource by classifying previous works and identifying current developments. The review also offers commentary on current research and prospects and their implication in line with SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) as it promotes fair access to resources and economic opportunities.

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Section: Issn (Print): 2959-0027mentioning

confidence: 99%

Beyond Borders: A Review of Food Market Integration and Sustaiable Develomnet Goals

Wagan,

Sahito,

Khooharo

et al. 2024

ABGMCE

View full text Add to dashboard Cite

show abstract

“…One, from a statistical point of view, the logarithmic transformation mitigates fluctuations of individual variables increasing the likelihood of stationarity after first differencing. And two, from an economic point of view, the logarithmic transformation allows the first differences of the variables to be interpreted as growth rates and coefficients in terms of elasticity (Keho, 2021;Waiswa, 2023b).…”

Section: Datamentioning

confidence: 99%

Role of macroeconomic indicators in Uganda’s food price inflation: a VECM approach

WAİSWA

2023

Ekinoks

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This study was conducted to empirically examine the potential impact of macroeconomic indicators such as exchange rate, GDP, money supply, and food exports on Uganda’s food price inflation. The study employed the Johansen cointegration analysis and VEC model using quarterly data from 2000Q1 to 2022Q1. Outcomes of the analysis show that all variables are positive and statistically significant in influencing food prices in the long run except GDP which was negative and significant. However, in the short run, only GDP and the lag of food CPI were significant and influenced food prices positively. Based on the variance decomposition analysis and the very low R-squared value (0.2493), it can be concluded that food prices in Uganda are greatly influenced by factors other than macroeconomic indicators. These factors include changes in the weather pattern which lead to low food supplies, price transmission effects of rising food and fuel prices in the international markets, increased domestic food demand, and higher costs of imported production inputs. Therefore, while it is necessary to recognize the role of macroeconomic indicators in food price inflation, it is equally important to emphasize the role played by these other factors in determining food prices in Uganda for effective policy implementations.

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Market integration and asymmetric price transmission in selected domestic markets for major staple foods in Uganda

Waiswa,

Yavuz

2023

Futur Bus J

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In this study, we examined the price transmission dynamics and market integration among domestic markets for Uganda’s major staple foods (matoke, maize, and beans) utilizing the Granger causality analysis, bounds test, Wald test for long- and short-run asymmetry, and the nonlinear ARDL model. Among the key findings, the causal order between wholesale and retail commodity prices flows unidirectionally forward from the wholesale to the retail level across all markets. Wholesale and retail prices for Uganda’s staple foods are interlinked in all markets, and spatially separated markets are also well integrated. The Wald test revealed asymmetric price transmission (APT) in speed alone for the pairs wholesale and retail prices of matoke in Kampala, and wholesale prices of matoke in Mbarara with Kampala retail prices, both APT in magnitude and APT in speed for the pairs wholesale and retail prices of beans in Kampala, wholesale and retail prices of maize in Masindi, and wholesale prices of beans in Masindi with wholesale and retail prices in Kampala. We also found that in the long run, retail prices respond more strongly to wholesale price increases than decreases, an implication of positive APT in the marketing supply chain of Uganda’s major staples. This may be linked to information asymmetry between traders and consumers, traders’ adjustment costs, production levels, inventory management, and the market power of retailers. We thus concluded that final consumers are more likely to experience an increase rather than a decrease in the prices of staples at the retail level, while retailers are more likely to benefit from price decreases at the wholesale level.

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Spatial Price Transmission of Maize Grain Prices among Markets in Kenya, Tanzania, and Uganda: Evidence from the Nonlinear ARDL Model

Cited by 3 publications

References 0 publications

Beyond Borders: A Review of Food Market Integration and Sustaiable Develomnet Goals

Beyond Borders: A Review of Food Market Integration and Sustaiable Develomnet Goals

Role of macroeconomic indicators in Uganda’s food price inflation: a VECM approach

Market integration and asymmetric price transmission in selected domestic markets for major staple foods in Uganda

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