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Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain

Author

Listed:
  • Marco Letta

    (Sapienza University of Rome, Italy)

  • Emiliano Magrini

    (Food and Agriculture Organization (FAO))

  • Pierluigi Montalbano

    (Sapienza University of Rome (Italy) and Sussex University (UK))

Abstract
Impact assessments of policy interventions on agricultural commodity prices are carried out by international organizations using nationwide measures which overlook the effects of spatial heterogeneity in incomplete markets. We introduce a multi-step methodology to build spatially-disaggregated nominal rates of protection in a data-scarce environment and test it along the maize value chain in Uganda. Results confirm that the spatial dispersion of farmers plays a key role in determining heterogeneity in nominal rates of protection. This finding has far-reaching policy implications: i) the assumption of a nationally-representative market pathway is unrealistic; ii) pan-national interventions may exacerbate, rather than reduce, price distortions.

Suggested Citation

  • Marco Letta & Emiliano Magrini & Pierluigi Montalbano, 2019. "Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain," Economics Bulletin, AccessEcon, vol. 39(1), pages 495-501.
    • Handle: RePEc:ebl:ecbull:eb-18-00982
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I1-P49.pdf
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    References listed on IDEAS

    as
    1. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2017. "Agricultural (Dis)Incentives and Food Security: Is There a Link?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 847-871.
    2. Osborne, Theresa, 2005. "Imperfect competition in agricultural markets: evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 76(2), pages 405-428, April.
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    4. Abdulai, Awudu, 2000. "Spatial price transmission and asymmetry in the Ghanaian maize market," Journal of Development Economics, Elsevier, vol. 63(2), pages 327-349, December.
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    7. World Bank, 2009. "Eastern Africa - A study of the Regional Maize Market and Marketing Costs," World Bank Publications - Reports 3155, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    nominal rates of protection; spatial price heterogeneity; maize value chain; Uganda.;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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