Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain

Letta, Marco, Magrini, Emiliano and Montalbano, Pierluigi (2019) Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain. Economics Bulletin, 39 (1). p.A49. ISSN 1545-2921

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Abstract

Impact assessments of policy interventions on agricultural commodity prices are carried out by international organizations using nationwide measures which overlook the effects of spatial heterogeneity in incomplete markets. We introduce a multi-step methodology to build spatially-disaggregated nominal rates of protection in a data-scarce environment and test it along the maize value chain in Uganda. Results confirm that the spatial dispersion of farmers plays a key role in determining heterogeneity in nominal rates of protection. This finding has far-reaching policy implications: i) the assumption of a nationally representative market pathway is unrealistic; ii) pan-national interventions may exacerbate, rather than reduce, price distortions.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HD Industries. Land use. Labour > HD1401 Agricultural economics
Depositing User: Prof. Pierluigi Montalbano
Date Deposited: 19 Mar 2019 17:05
Last Modified: 01 Jul 2019 18:16
URI: http://sro.sussex.ac.uk/id/eprint/82629

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