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What drives local food prices ? evidence from the Tanzanian maize market

Author

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  • Baffes,John
  • Kshirsagar,Varun
  • Mitchell,Donald
Abstract
This study quantifies the relationship between Tanzanian and external maize markets while also accounting for domestic influences. It concludes that external influences on domestic prices originate from regional, rather than global, markets. It also shows that, compared to external factors, domestic factors exert a greater influence on Tanzanian maize markets. Further, the mechanisms through which trade policies influence maize markets involve interactions with both external market shocks and domestic weather shocks. Overall, it provides evidence that the intermittent imposition of export bans in Tanzania has had adverse impacts on its maize markets, and consequently, on the development of its agrarian economy.

Suggested Citation

  • Baffes,John & Kshirsagar,Varun & Mitchell,Donald, 2015. "What drives local food prices ? evidence from the Tanzanian maize market," Policy Research Working Paper Series 7338, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7338
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    Cited by:

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    4. 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.
    5. John Baffes & Varun Kshirsagar, 2020. "Shocks to food market systems: A network approach," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 111-129, January.
    6. Krah, Kwabena, 2022. "Maize price variability, land use change, and forestloss: evidence from Ghana," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322247, Agricultural and Applied Economics Association.
    7. Linde Götz & Feng Qiu & Jean-Philippe Gervais & Thomas Glauben, 2016. "Export Restrictions and Smooth Transition Cointegration: Export Quotas for Wheat in Ukraine," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 398-419, June.
    8. Shon Ferguson & David Ubilava, 2022. "Global commodity market disruption and the fallout," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 737-752, October.
    9. Garciá-Germán, Sol & Romeo, Alessandro & Magrini, Emiliano & Balilé, Jean, 2016. "The impact of food price shocks on weight loss: Evidence from the adult population of Tanzania," Department of Agricultural and Rural Development (DARE) Discussion Papers 260778, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    10. David, T. & Gitau, R. & Meyer, F.H. & Chisanga, B. & Jayne, T.S., 2016. "Evaluating price volatility and the role of trade in Eastern and Southern African maize markets," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249291, African Association of Agricultural Economists (AAAE).
    11. Michelson, Hope & Fairbairn, Anna & Ellison, Brenna & Maertens, Annemie & Manyong, Victor, 2021. "Misperceived quality: Fertilizer in Tanzania," Journal of Development Economics, Elsevier, vol. 148(C).
    12. Linde Götz & Ivan Djuric & Oleg Nivievskyi, 2016. "Regional Price Effects of Extreme Weather Events and Wheat Export Controls in Russia and Ukraine," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 741-763, September.
    13. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw T. & Abdoulaye, Tahirou, 2018. "Estimating the impact of a credit and technology intervention on farmer maize transactions: Insights from a RCT in Tanzania," 2018 Annual Meeting, August 5-7, Washington, D.C. 274235, Agricultural and Applied Economics Association.
    14. Davids, Tracy & Schroeder, Kateryna G. & Meyer, Ferdinand & Chisanga, Brian, 2015. "Regional Price Transmission in Southern African Maize Markets," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229602, International Agricultural Trade Research Consortium.
    15. Patrick Blagrave, 2020. "Inflation co-movement in emerging and developing Asia: the monsoon effect," Applied Economics Letters, Taylor & Francis Journals, vol. 27(15), pages 1277-1283, September.
    16. Joseph Mawejje, 2016. "Food prices, energy and climate shocks in Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-18, December.
    17. Randell, Heather & Gray, Clark & Shayo, Elizabeth H., 2022. "Climatic conditions and household food security: Evidence from Tanzania," Food Policy, Elsevier, vol. 112(C).
    18. Dietrich, Stephan & Giuffrida, Valerio & Martorano, Bruno & Schmerzeck, Georg, 2021. "COVID-19 policy responses, mobility, and food prices: Evidence from local markets in 47 low to middle income countries," MERIT Working Papers 2021-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw & Abdoulaye, Tahirou, 2022. "Overcoming smallholder farmers’ post-harvest constraints through harvest loans and storage technology: Insights from a randomized controlled trial in Tanzania," Journal of Development Economics, Elsevier, vol. 157(C).
    20. repec:ags:aaea22:335809 is not listed on IDEAS
    21. Patrick L. Hatzenbuehler & Philip C. Abbott & Tahirou Abdoulaye, 2017. "Price Transmission in Nigerian Food Security Crop Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 143-163, February.
    22. Patrick L. Hatzenbuehler & Xiaoxue Du & Kathleen Painter, 2021. "Price transmission with sparse market information: The case of United States chickpeas," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 665-682, July.
    23. Joseph Mawejje, 2016. "Food prices, energy and climate shocks in Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-18, December.
    24. Luca Cattivelli & Federico Antonioli, 2023. "When cointegration is interrupted: Price transmission analysis in the Italian dairy‐feed industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 744-761, July.
    25. Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2020. "Global and local food value chains in Africa: A review," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 143-157, January.

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    More about this item

    Keywords

    Emerging Markets; Markets and Market Access; Access to Markets; Climate Change Economics; Food&Beverage Industry;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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