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Maize Market Liberalisation in Benin: A Case of Hysteresis

Maize Market Liberalisation in Benin: A Case of Hysteresis 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of African Economies Oxford University Press

Maize Market Liberalisation in Benin: A Case of Hysteresis

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References (1)

Publisher
Oxford University Press
Copyright
© The author 2006. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org
ISSN
0963-8024
eISSN
1464-3723
DOI
10.1093/jae/ejk008
Publisher site
See Article on Publisher Site

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.

Journal

Journal of African EconomiesOxford University Press

Published: Jan 1, 2007

Keywords: JEL classification R15 C32

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