354
Views
8
CrossRef citations to date
0
Altmetric
Articles

Market Integration and Uncertainty: The Impact of Domestic and International Commodity Price Variability on Rural Household Income and Welfare in Ghana and Peru

&
Pages 1354-1381 | Accepted 01 May 2008, Published online: 23 Oct 2008

References

  • Abdulai , A. 2000 . Spatial price transmission and asymmetry in the Ghanaian maize market . Journal of Development Studies , 63 ( 2 ) : 327 – 349 .
  • Ardeni , P. G. 1989 . Does the law of one price really hold for commodity prices? . American Journal of Agricultural Economics , 71 ( 3 ) : 303 – 328 .
  • Asuming-Brempong , S. Economic and agricultural policy reforms and their effects on the role of agriculture in Ghana . October , Rome . Paper prepared for the Roles of Agriculture International Conference , pp. 20 – 22 .
  • Barrett , C. B. and Li , J. R. 2002 . Distinguishing between equilibrium and integration in spatial price analysis . American Journal of Agricultural Economics , 84 ( 2 ) : 292 – 307 .
  • Baulch , B. 1997 . Testing for food market integration revisited . Journal of Development Studies , 33 ( 4 ) : 477 – 487 .
  • Bourguignon , F. , Lambert , S. and Suwa-Eisenmann , A. 2004 . Trade exposure and income volatility in cash-crop exporting developing countries . European Review of Agricultural Economics , 31 ( 3 ) : 369 – 387 .
  • Bullock , D. S. , Garcia , P. and Shin , K. Y. 2005 . Measuring producer welfare under output price uncertainty and risk non-neutrality . Australian Journal of Agricultural and Resource Economics , 49 ( 1 ) : 1 – 21 .
  • Carter , M. R. 1997 . Environment, technology, and the social articulation of risk in West African agriculture . Economic Development and Cultural Change , 45 ( 3 ) : 557 – 590 .
  • Chavas , J.-P. and Holt , M. 1990 . Acreage decisions under risk: the case of corn and soybeans . American Journal of Agricultural Economics , 72 ( 3 ) : 529 – 538 .
  • Christiaensen , L. and Subbarao , K. 2005 . Toward an understanding of household vulnerability in rural Kenya . Journal of African Economies , 14 ( 4 ) : 520 – 558 .
  • Christiaensen , L. , Hoffmann , V. and Sarris , A. 2007 . “ Gauging the welfare effects of shocks in rural Tanzania ” . Washington , DC : World Bank . Policy Research Working Paper No 4406
  • Collier , P. and Dehn , J. 2001 . “ Aid, shocks and growth ” . Washington , DC : World Bank . Policy Research Working Paper No. 2688
  • Deaton , A. 1991 . Savings and liquidity constraints . Econometrica , 59 ( 5 ) : 1221 – 1248 .
  • Deaton , A. 1992 . Understanding Consumption , Oxford : Clarendon Press .
  • Deaton , A. and Miller , R. 1996 . International commodity prices, macroeconomic performance and politics in sub-Saharan Africa . Journal of African Economies , 5 ( 3 ) : 99 – 191 .
  • Dehn , J. 2000 . “ Commodity price uncertainty in developing countries ” . Washington , DC : World Bank . Policy Research Working Paper No. 2426
  • Dercon , S. 2005 . “ Risk, insurance and poverty ” . In Insurance Against Poverty , Edited by: Dercon , S. 9 – 37 . Oxford : Oxford University Press .
  • Diaz-Bonilla , E. M. , Thomas , M. , Robinson , S. and Cattaneo , A. Food security and trade negotiations in the World Trade Organization: a cluster analysis of country groups . Trade and Macroeconomics Division Working Paper No. 59, International Food Policy Research Institute, Washington, DC .
  • Dickey , D. and Fuller , W. 1979 . Distribution of the estimators for autoregressive time series with a unit root . Journal of the American Statistical Association , 74 ( 366 ) : 427 – 431 .
  • Fafchamps , M. , Udry , C. and Czukas , K. 1998 . Drought and saving in West Africa: are livestock a buffer stock? . Journal of Development Economics , 55 ( 2 ) : 273 – 305 .
  • Flavin , M. A. 1981 . The adjustment of consumption to changing expectations about future income . Journal of Political Economy , 89 ( 5 ) : 974 – 1009 .
  • Gardner , B. L. and Brooks , K. M. 1994 . Food prices and market integration in Russia: 1992–93 . American Journal of Agricultural Economics , 76 ( 3 ) : 641 – 646 .
  • Hansen , B. E. and Seo , B. 2002 . Testing for two-regime threshold cointegration in vector error-correction models . Journal of Econometrics , 110 ( 2 ) : 293 – 318 .
  • Heuft , A. and Buchenrieder , G. 2003 . Decentralization in Peru's agricultural policy: a critical review from 1993 to 1998 . Oxford Development Studies , 31 ( 3 ) : 341 – 363 .
  • Jalan , J. and Ravallion , M. 1999 . Are the poor less well insured? Evidence on vulnerability to income risk in rural China . Journal of Development Economics , 58 ( 1 ) : 61 – 81 .
  • Johansen , S. 1988 . Statistical analysis of cointegration vectors . Journal of Economic Dynamics and Control , 12 ( 2–3 ) : 231 – 254 .
  • Just , R. , Hueth , D. and Schmitz , A. 1982 . Applied Welfare Analysis and Public Policy , New York : Prentice-Hall .
  • Kazianga , H. and Udry , C. 2006 . Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso . Journal of Development Economics , 79 ( 2 ) : 413 – 446 .
  • Kurosaki , T. and Fafchamps , M. 2002 . Insurance market efficiency and crop choices in Pakistan . Journal of Development Studies , 67 ( 2 ) : 419 – 453 .
  • Kwiatowski , D. , Phillips , P. C.B. , Schmidt , P. and Shin , Y. 1992 . Testing the null hypothesis of stationarity against the alternative of a unit root . Journal of Econometrics , 54 ( 1–3 ) : 159 – 178 .
  • Larson , D. M. 1988 . Exact welfare measurement for producers under uncertainty . American Journal of Agricultural Economics , 70 ( 3 ) : 597 – 603 .
  • Larson , D. F. , Anderson , F. , Jock , R. and Varangis , P. 2004 . Policies on managing risk in agricultural markets . World Bank Research Observer , 19 ( 2 ) : 199 – 230 .
  • Larson , D. M. and Plessman , F. 2002 . “ Do farmers choose to be inefficient? Evidence from bicol Philippines ” . Washington , DC : World Bank . Policy Research Working Paper No. 2787
  • Lütkepohl , H. 1993 . Introduction to Multiple Time Series Analysis , Berlin : Springer-Verlang .
  • Massell , B. F. 1969 . Price stabilization and welfare . Quarterly Journal of Economics , 83 ( 2 ) : 284 – 298 .
  • Morduch , J. 2005 . “ Consumption smoothing across space: testing theories of risk sharing in the ICRISAT study region of south India ” . In Insurance Against Poverty , Edited by: Dercon , S. 38 – 58 . Helsinki : Oxford University Press and World Institute of Development Economics Research .
  • Newbery , D. M.G. and Stiglitz , J. E. 1981 . The Theory of Commodity Price Stabilisation , Oxford : Clarendon Press .
  • Palaskas , T. and Harriss , B. 1993 . Testing market integration: new approaches with case material from the West Bengal food economy . Journal of Development Studies , 30 ( 1 ) : 1 – 57 .
  • Palaskas , T. and Crowe , T. 1996 . Testing for price transmission with seasonally integrated producer and consumer price series from agriculture . European Review of Agricultural Economics , 23 ( 4 ) : 473 – 486 .
  • Phillips , P. C.B. 1998 . Impulse response and forecast error variance asymptotics in nonstationary VARs . Journal of Econometrics , 83 ( 1 ) : 21 – 56 .
  • Phillips , P. C.B. and Perron , P. 1988 . Testing for a unit root in time series regression . Biometrica , 75 ( 2 ) : 335 – 346 .
  • Ravallion , M. 1986 . Testing market integration . American Journal of Agricultural Economics , 68 ( 2 ) : 292 – 307 .
  • Rosenzweig , M. and Binswanger , H. 1993 . Wealth, weather risk, and the composition and profitability of agricultural investment . Economic Journal , 103 ( 416 ) : 56 – 78 .
  • Rosenzweig , M. and Wolpin , K. 1993 . Credit market constraints, consumption smoothing, and the accumulation of durable production assets in low-income countries: investment in bullocks in India . Journal of Political Economy , 101 ( 2 ) : 223 – 244 .
  • Samuelson , P. A. 1952 . Spatial price equilibrium and linear programming . American Economic Review , 42 ( 3 ) : 560 – 580 .
  • Sargent , T. 1993 . Bounded Rationality in Macroeconomics , Oxford : Clarendon Press .
  • Sarris , A. 2002 . “ The demand for commodity insurance by developing country agricultural producers: theory and application to cocoa in Ghana ” . Washington , DC : World Bank . Policy Research Working Paper No. 2887
  • Sarris , A. H. and Karfakis , P. 2006 . Household vulnerability in rural Tanzania. Paper presented at the Centre for the Study of African Economies Conference . March 19–21 2006 , Oxford .
  • Sexton , R. , Kling , C. and Carman , H. 1991 . Market integration, efficiency of arbitrage and imperfect competition: methodology and application to US celery . American Journal of Agricultural Economics , 73 ( 3 ) : 568 – 580 .
  • Skees , J. , Gober , S. , Varangis , P. , Lester , R. and Kalavakonda , V. 2001 . “ Developing rainfall based index insurance in Morocco ” . Washington , DC : World Bank . Policy Research Working Paper 2577
  • Takayama , T. and Judge , G. G. 1971 . Spatial and Temporal Price Allocation Models , Amsterdam : North Holland .
  • Tsur , Y. 1993 . A simple procedure to evaluate ex ante producer welfare under price uncertainty . American Journal of Agricultural Economics , 75 ( 1 ) : 44 – 51 .
  • Turnovsky , S. J. 1976 . The distribution of welfare gains from price stabilisation: the case of multiplicative disturbances . International Economic Review , 17 ( 1 ) : 133 – 148 .
  • Turnovsky , S. J. , Shalit , H. and Schmitz , A. 1980 . Consumer's surplus, price instability and consumer welfare . Econometrica , 48 ( 1 ) : 135 – 152 .
  • Zanias , G. 1993 . Testing for integration in European Community agricultural product markets . Journal of Agricultural Economics , 44 ( 3 ) : 418 – 427 .
  • Zeldes , S. P. 1989a . Consumption and liquidity constraints: an empirical investigation . Journal of Political Economy , 79 ( 2 ) : 305 – 346 .
  • Zimmerman , F. J. and Carter , M. R. 2003 . Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints . Journal of Development Economics , 71 ( 2 ) : 233 – 260 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.