Distortions to agricultural incentives: Evidence from Nigerian value chains

Understanding how policies affect price transmission and incentives for producers and consumers along the complete value chain is a relevant research question due to the more globalized structure of agricultural value chains. In particular, Nigerian agricultural value chains have been targeted by a...

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Main Authors: Tokgoz, Simla, Allen, Summer L., Majeed, Fahd, Paris, Bas, Adeola, Olajide, Osabuohien, Evans
Format: Journal Article
Language:Inglés
Published: John Wiley & Sons 2020
Subjects:
Online Access:https://hdl.handle.net/10568/142885
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author Tokgoz, Simla
Allen, Summer L.
Majeed, Fahd
Paris, Bas
Adeola, Olajide
Osabuohien, Evans
author_browse Adeola, Olajide
Allen, Summer L.
Majeed, Fahd
Osabuohien, Evans
Paris, Bas
Tokgoz, Simla
author_facet Tokgoz, Simla
Allen, Summer L.
Majeed, Fahd
Paris, Bas
Adeola, Olajide
Osabuohien, Evans
author_sort Tokgoz, Simla
collection Repository of Agricultural Research Outputs (CGSpace)
description Understanding how policies affect price transmission and incentives for producers and consumers along the complete value chain is a relevant research question due to the more globalized structure of agricultural value chains. In particular, Nigerian agricultural value chains have been targeted by a number of policy decisions. We analyze the import‐oriented palm oil value chain and the export‐oriented cacao value chain, estimating the price distortions from policies and their implications for production incentives at the regional level. For palm oil, due to protective trade policies and domestic initiatives, the nominal rate of protection (NRP) at the farmgate for palm oil producers shows that producers have been protected. NRPs at the border for cacao beans and cocoa products are negative, which may be due to a quality gap, the export market structure, and the concentration of buyers in global markets. Negative NRPs at the farmgate are seen for all regions, showing disincentives in the cacao beans export market reverberate through the domestic market despite domestic support policies. In both value chains, NRPs at farmgate vary across regions partially due to regional policy frameworks and partially due to local conditions impacting price transmission.
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spelling CGSpace1428852024-11-15T08:52:55Z Distortions to agricultural incentives: Evidence from Nigerian value chains Tokgoz, Simla Allen, Summer L. Majeed, Fahd Paris, Bas Adeola, Olajide Osabuohien, Evans value chains agricultural value chains policies agricultural policies capacity development agriculture incentives palm oils policy analysis Understanding how policies affect price transmission and incentives for producers and consumers along the complete value chain is a relevant research question due to the more globalized structure of agricultural value chains. In particular, Nigerian agricultural value chains have been targeted by a number of policy decisions. We analyze the import‐oriented palm oil value chain and the export‐oriented cacao value chain, estimating the price distortions from policies and their implications for production incentives at the regional level. For palm oil, due to protective trade policies and domestic initiatives, the nominal rate of protection (NRP) at the farmgate for palm oil producers shows that producers have been protected. NRPs at the border for cacao beans and cocoa products are negative, which may be due to a quality gap, the export market structure, and the concentration of buyers in global markets. Negative NRPs at the farmgate are seen for all regions, showing disincentives in the cacao beans export market reverberate through the domestic market despite domestic support policies. In both value chains, NRPs at farmgate vary across regions partially due to regional policy frameworks and partially due to local conditions impacting price transmission. 2020-05-01 2024-05-22T12:11:15Z 2024-05-22T12:11:15Z Journal Article https://hdl.handle.net/10568/142885 en https://hdl.handle.net/10568/146771 https://doi.org/10.1111/1477-9552.12305 https://doi.org/10.1108/JADEE-02-2018-0024 https://hdl.handle.net/10568/145408 https://doi.org/10.2499/9780896294158 Limited Access John Wiley & Sons Tokgoz, Simla; Allen, Summer L.; Majeed, Fahd; Paris, Bas; Adeola, Olajide; and Osabuohien, Evans. 2020. Distortions to agricultural incentives: Evidence from Nigerian value chains. Review of Development Economics 24(3): 1027-1045. https://doi.org/10.1111/rode.12664
spellingShingle value chains
agricultural value chains
policies
agricultural policies
capacity development
agriculture
incentives
palm oils
policy analysis
Tokgoz, Simla
Allen, Summer L.
Majeed, Fahd
Paris, Bas
Adeola, Olajide
Osabuohien, Evans
Distortions to agricultural incentives: Evidence from Nigerian value chains
title Distortions to agricultural incentives: Evidence from Nigerian value chains
title_full Distortions to agricultural incentives: Evidence from Nigerian value chains
title_fullStr Distortions to agricultural incentives: Evidence from Nigerian value chains
title_full_unstemmed Distortions to agricultural incentives: Evidence from Nigerian value chains
title_short Distortions to agricultural incentives: Evidence from Nigerian value chains
title_sort distortions to agricultural incentives evidence from nigerian value chains
topic value chains
agricultural value chains
policies
agricultural policies
capacity development
agriculture
incentives
palm oils
policy analysis
url https://hdl.handle.net/10568/142885
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AT adeolaolajide distortionstoagriculturalincentivesevidencefromnigerianvaluechains
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