2005
DOI: 10.1080/0022038042000313291
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Evidence and Implications of Non-Tradability of Food Staples in Tanzania 1983-98

Abstract: Economic reform programmes assume that major goods are tradable, such that depreciation of the real exchange rate raises the value of output compared to factor costs in domestic currency. In Tanzania, major food staples that account for most real income are non-tradables in at least one-quarter of the country. This conclusion is demonstrated and the implications are assessed for the constraints imposed on macroeconomic-led adjustment strategies.

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Cited by 18 publications
(7 citation statements)
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“…It estimates the supply and/or demand functions of particular merchandise, especially investigating price elasticities, using an instrumental variable technique (e.g., Morrison, 1997;Reed and Saghaian, 2004). 10 As per Delgado et al (2005), the poor quality of transport infrastructure hampers efficient pass-through of wheat, rice, maize and cassava prices in Tanzania. Iimi (2007) also shows that quality roads and electricity infrastructure could significantly reduce beef production and export costs.…”
Section: Degree Linementioning
confidence: 99%
“…It estimates the supply and/or demand functions of particular merchandise, especially investigating price elasticities, using an instrumental variable technique (e.g., Morrison, 1997;Reed and Saghaian, 2004). 10 As per Delgado et al (2005), the poor quality of transport infrastructure hampers efficient pass-through of wheat, rice, maize and cassava prices in Tanzania. Iimi (2007) also shows that quality roads and electricity infrastructure could significantly reduce beef production and export costs.…”
Section: Degree Linementioning
confidence: 99%
“…Baffes and Gardner (2003), working with a sample of countries that had implemented reforms in agricultural pricing, found evidence of a much weaker pass-through result. This result is echoed in work by Delgado et al (2004), in a study of Tanzania, who find that while the 3-month pass-through from world to domestic food prices is around 0.40 in reasonably 'well integrated' food markets in Tanzania, it is less than 0.30 in remote markets.…”
Section: The Evidencementioning
confidence: 93%
“…In addition, trade openness can increase the price of exported products domestically and deteriorate people’s purchasing power, while in import-competing sectors income and employment can be negatively affected by the increased competition (FAO, 2015 ). Delgado et al ( 2005 ) underline the non-tradability of a high share of staple crops in some African countries, calling therefore for caution in considering the positive income effect derived from trade intensification. Finally, Wobst ( 2003 ) identifies that similar trade policy measures may have different impacts on household income and marketing margins depending on the underlying economic structures of the diverse countries.…”
Section: The Potential Impacts Of Trade On Food Securitymentioning
confidence: 99%