Marketing policy reform and competitiveness: why integration and arbitrage costs matter

The response of local markets to sectoral and macroeconomic policy changes is a key determinant of the long term impact of policy reforms on reforming economies. In other words, changes in arbitrage costs that are associated with policy reforms as well as the level of integration among local markets...

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Autor principal: Badiane, Ousmane
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1998
Materias:
Acceso en línea:https://hdl.handle.net/10568/161237
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author Badiane, Ousmane
author_browse Badiane, Ousmane
author_facet Badiane, Ousmane
author_sort Badiane, Ousmane
collection Repository of Agricultural Research Outputs (CGSpace)
description The response of local markets to sectoral and macroeconomic policy changes is a key determinant of the long term impact of policy reforms on reforming economies. In other words, changes in arbitrage costs that are associated with policy reforms as well as the level of integration among local markets exert a strong influence of the economic outcome of reform programs. The objective of this paper is to explore this question theoretically and empirically. A model that can be used to capture the long term process that is involved has been developed and tested using data from Ghana. The model is later applied to analyze the outcomes of further liberalization of groundnut markets in Senegal. The findings highlights the potential cost of failing to pay sufficient attention, when liberalizing domestic markets, to the emergence of a competitive and efficient private distribution sector. The results also indicate that, when state-run processing sectors with monopoly power are involved, effective liberalization of pricing and marketing policies in all likelihood would not yield the anticipated benefits, unless accompanied with efforts to improve productivity and cut unit costs of production in the processing sector.
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spelling CGSpace1612372025-11-06T06:22:52Z Marketing policy reform and competitiveness: why integration and arbitrage costs matter Badiane, Ousmane markets prices macroeconomics models The response of local markets to sectoral and macroeconomic policy changes is a key determinant of the long term impact of policy reforms on reforming economies. In other words, changes in arbitrage costs that are associated with policy reforms as well as the level of integration among local markets exert a strong influence of the economic outcome of reform programs. The objective of this paper is to explore this question theoretically and empirically. A model that can be used to capture the long term process that is involved has been developed and tested using data from Ghana. The model is later applied to analyze the outcomes of further liberalization of groundnut markets in Senegal. The findings highlights the potential cost of failing to pay sufficient attention, when liberalizing domestic markets, to the emergence of a competitive and efficient private distribution sector. The results also indicate that, when state-run processing sectors with monopoly power are involved, effective liberalization of pricing and marketing policies in all likelihood would not yield the anticipated benefits, unless accompanied with efforts to improve productivity and cut unit costs of production in the processing sector. 1998 2024-11-21T09:54:21Z 2024-11-21T09:54:21Z Working Paper https://hdl.handle.net/10568/161237 en Open Access application/pdf International Food Policy Research Institute Badiane, Ousmane. 1998. Marketing policy reform and competitiveness;why integration and arbitrage costs matter. MTID Discussion Paper 22. https://hdl.handle.net/10568/161237
spellingShingle markets
prices
macroeconomics
models
Badiane, Ousmane
Marketing policy reform and competitiveness: why integration and arbitrage costs matter
title Marketing policy reform and competitiveness: why integration and arbitrage costs matter
title_full Marketing policy reform and competitiveness: why integration and arbitrage costs matter
title_fullStr Marketing policy reform and competitiveness: why integration and arbitrage costs matter
title_full_unstemmed Marketing policy reform and competitiveness: why integration and arbitrage costs matter
title_short Marketing policy reform and competitiveness: why integration and arbitrage costs matter
title_sort marketing policy reform and competitiveness why integration and arbitrage costs matter
topic markets
prices
macroeconomics
models
url https://hdl.handle.net/10568/161237
work_keys_str_mv AT badianeousmane marketingpolicyreformandcompetitivenesswhyintegrationandarbitragecostsmatter