Maize Market Liberalisation in Benin: A Case of Hysteresis

C. Lutz, W.E. Kuiper, A. van Tilburg

Research output: Contribution to journalArticleAcademicpeer-review

18 Citations (Scopus)

Abstract

This article analyses the effect of 10 years of `liberalisation' policy on price integration in the Beninese maize market. The comparison of price series for two periods, before and after the policy change, shows that the expected positive effect is not confirmed by co-integration analysis. Though markets were, and are, integrated in the long run, the sluggish speed of adjustment has not improved, which is why observed price differences between market places are often larger than marketing costs can justify. We conclude that the liberalisation policies did not significantly affect maize market integration and that, therefore, more effective policy instruments are required in order to strengthen the competitive forces in the market
Original languageEnglish
Pages (from-to)102-133
JournalJournal of African Economies
Volume16
Issue number1
DOIs
Publication statusPublished - 2007

Keywords

  • threshold cointegration
  • price leadership
  • integration
  • arbitrage
  • costs
  • law
  • systems
  • term
  • rank

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