DETERMINATION OF SPATIAL INTEGRATION AND SUBSTITUTION OF FOREIGN RICE FOR LOCAL RICE IN GHANA

This study tested for spatial integration in the rice market and the substitution of imported rice for local rice in Ghana. It is established that the markets for domestic imported rice are well-integrated, but not complete. The imperfect spatial integration of domestic foreign rice markets implies that the market provides opportunities for arbitrage. Price leadership roles are found to be determined by the kind of sub-inter-regional-trade network defined. However, in all, the Accra market emerged as a dominant market leader in the domestic foreign rice market. There is evidence of significant regional substitution of foreign rice for local rice in the long run, but the result is mixed in the short run. The result that local rice is not a perfect substitute for imported rice implies that price disincentive measures such as increasing the import tariffs on foreign rice will only produce a mild effect on increasing the producer price faced by local rice farmers, but aggravate the burden on households’ budget.


Issue Date:
Oct 05 2014
Publication Type:
Journal Article
DOI and Other Identifiers:
doi: 10.15414/raae.2014.17.02.49-64 (Other)
PURL Identifier:
http://purl.umn.edu/196631
Published in:
Review of Agricultural and Applied Economics (RAAE), Volume 17, Number 2
Page range:
49-64
Total Pages:
16
JEL Codes:
Q00; Q1; Q11; Q18
Note:
http://roaae.org/wp-content/uploads/2014/11/RAAE_02_2014_Adom.pdf




 Record created 2017-04-01, last modified 2017-05-27

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