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Gurmu, M., Meyer, F., Hassan, R. (2017). Modelling Price Formation and Dynamics in the Ethiopian Maize Market. Journal of Agricultural Science and Technology, 19(Supplementary Issue), 1439-1452.
M. Y. Gurmu; F. Meyer; R. Hassan. "Modelling Price Formation and Dynamics in the Ethiopian Maize Market". Journal of Agricultural Science and Technology, 19, Supplementary Issue, 2017, 1439-1452.
Gurmu, M., Meyer, F., Hassan, R. (2017). 'Modelling Price Formation and Dynamics in the Ethiopian Maize Market', Journal of Agricultural Science and Technology, 19(Supplementary Issue), pp. 1439-1452.
Gurmu, M., Meyer, F., Hassan, R. Modelling Price Formation and Dynamics in the Ethiopian Maize Market. Journal of Agricultural Science and Technology, 2017; 19(Supplementary Issue): 1439-1452.

Modelling Price Formation and Dynamics in the Ethiopian Maize Market

Article 18, Volume 19, Supplementary Issue, November and December 2017, Page 1439-1452  XML PDF (625 K)
Document Type: Research Paper
Authors
M. Y. Gurmu 1; F. Meyer2; R. Hassan3
1Department of Agricultural Economics, Extension and Rural Development, University of Pretoria, South Africa.
2Bureau for Food and Agricultural Policy (BFAP), University of Pretoria, South Africa.
3Centre for Environmental Economics and Policy Analysis (CEEPA), University of Pretoria, South Africa.
Receive Date: 23 July 2016,  Revise Date: 30 January 2017,  Accept Date: 27 February 2017 
Abstract
This study is an attempt to examine price formation, and dynamics in the Ethiopian maize market. A single commodity partial equilibrium and the Johansen’s co-integration approaches were used to investigate maize price formation and market integration in the Ethiopian maize market. Findings from the maize industry outlook indicated that maize production is expected to grow for the forecasted period. An increase in maize production was, however, not enough to offset the growth on the demand side. From the yield simulation analysis, we found that a 20% increase in maize yield would reduce nominal maize price by 81%. Co-integration analysis indicated that the Ethiopian wholesale maize markets have become more efficient in the recent years suggesting that price related information is transmitted more efficiently across consumption and production wholesale maize markets.
Keywords
Agricultural market; Equilibrium price; maize; Market integration; Price formation
Main Subjects
Agricultural Economics
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