Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal
This article investigates the asymmetric effects of global price and productivity shocks on welfare in the context of imperfect competition. The primary objective is to understand how market concentration affects the transmission of economic shocks and their impacts on various households. A CGE mode...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Informa UK Limited
2025
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/173579 |
| _version_ | 1855539816531230720 |
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| author | Zidouemba, Patrice Relouende Traoré, Fousseini Odjo, Sunday Pierre |
| author_browse | Odjo, Sunday Pierre Traoré, Fousseini Zidouemba, Patrice Relouende |
| author_facet | Zidouemba, Patrice Relouende Traoré, Fousseini Odjo, Sunday Pierre |
| author_sort | Zidouemba, Patrice Relouende |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This article investigates the asymmetric effects of global price and productivity shocks on welfare in the context of imperfect competition. The primary objective is to understand how market concentration affects the transmission of economic shocks and their impacts on various households. A CGE model, calibrated on a 2014 social accounting matrix for Senegal, is used. The model features a trading sector operating under a Cournot oligopoly with increasing returns to scale. Two scenarios are simulated: a 15% increase in global import prices and a 10% increase in agricultural productivity, each considering different levels of market concentration. The findings reveal that higher global import prices reduce household well-being, a situation exacerbated by low market competition. In contrast, agricultural productivity gains enhance well-being, with these benefits amplified by greater competition. However, the wealthiest households in Dakar benefit from low competition due to their positions in oligopolistic companies. To maximize household well-being, economic policies should focus on strengthening market competition, particularly in the trading sector. Actions such as reducing entry barriers for new businesses and regulating anti-competitive practices can help mitigate the adverse effects of global price increases and amplify the benefits of agricultural productivity gains. |
| format | Journal Article |
| id | CGSpace173579 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Informa UK Limited |
| publisherStr | Informa UK Limited |
| record_format | dspace |
| spelling | CGSpace1735792025-10-26T12:51:04Z Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal Zidouemba, Patrice Relouende Traoré, Fousseini Odjo, Sunday Pierre prices shock markets agricultural productivity households computable general equilibrium models This article investigates the asymmetric effects of global price and productivity shocks on welfare in the context of imperfect competition. The primary objective is to understand how market concentration affects the transmission of economic shocks and their impacts on various households. A CGE model, calibrated on a 2014 social accounting matrix for Senegal, is used. The model features a trading sector operating under a Cournot oligopoly with increasing returns to scale. Two scenarios are simulated: a 15% increase in global import prices and a 10% increase in agricultural productivity, each considering different levels of market concentration. The findings reveal that higher global import prices reduce household well-being, a situation exacerbated by low market competition. In contrast, agricultural productivity gains enhance well-being, with these benefits amplified by greater competition. However, the wealthiest households in Dakar benefit from low competition due to their positions in oligopolistic companies. To maximize household well-being, economic policies should focus on strengthening market competition, particularly in the trading sector. Actions such as reducing entry barriers for new businesses and regulating anti-competitive practices can help mitigate the adverse effects of global price increases and amplify the benefits of agricultural productivity gains. 2025-12-31 2025-03-11T20:04:51Z 2025-03-11T20:04:51Z Journal Article https://hdl.handle.net/10568/173579 en Open Access Informa UK Limited Zidouemba, Patrice Relouende; Traore, Fousseini; and Odjo, Sunday Pierre. 2025. Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal. Cogent Economics and Finance 13(1): 2475160. https://doi.org/10.1080/23322039.2025.2475160 |
| spellingShingle | prices shock markets agricultural productivity households computable general equilibrium models Zidouemba, Patrice Relouende Traoré, Fousseini Odjo, Sunday Pierre Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal |
| title | Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal |
| title_full | Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal |
| title_fullStr | Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal |
| title_full_unstemmed | Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal |
| title_short | Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal |
| title_sort | imperfect competition and asymmetric welfare effects of global price and productivity shocks a cge model analysis for senegal |
| topic | prices shock markets agricultural productivity households computable general equilibrium models |
| url | https://hdl.handle.net/10568/173579 |
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