Vertical price transmission in the Nigerian cowpea market

Wu, Wenchao; Chien, Hsiaoping; Sakurai, Takeshi; Muranaka, Satoru

doi:10.1108/bfj-09-2018-0591

Cited by 3 publications

(2 citation statements)

References 36 publications

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“…Several factors are listed in the literature to explain low price transmission in the developing countries: the market power of some intermediaries (Abdulai, 2000), the oligopolistic behavior, the asymmetric information (von Cramon-Taubadel and Meyer, 2004), intervention policies (Krivonos, 2004), transaction costs (Goodwin and Piggott, 2001), and market structure and security (Wu et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Asymmetry in Transaction Costs and Price Transmission: The Case of Cowpea Market in Burkina Faso

Nikiema

Sakurai

2020

JJAE

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We use a TVECM to analyze the nature of price relationship and adjustment between local markets of cowpea in Burkina Faso. First, the estimated thresholds suggest that not only transaction costs between central market and secondary markets are asymmetric but also higher for producing markets. Second, the sign and the amplitude of adjustment parameters are consistent with the spatial equilibrium even if prices respond quickly to positive shocks than negative shocks. Finally, the distribution of observations across different trade regimes suggests that markets are well performing in the sense that they display fewer violations of competitive spatial equilibrium.

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Section: Introductionmentioning

confidence: 99%

Asymmetry in Transaction Costs and Price Transmission: The Case of Cowpea Market in Burkina Faso

Nikiema

Sakurai

2020

JJAE

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“…However, a study byGan (2021) suggests that the main factors affecting the price of apples in China are varieties, logistics level, and production area. On the other hand, a study fromWu et al (2019) indicates that price transmission is symmetric in Kano but asymmetric in Ibadan in the Nigerian cowpea market. The differences in market structure, such as the level of competition, inventory duration, and transaction costs, contribute to the observed asymmetry.…”

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confidence: 99%

Vertical price transmission along the apple supply chain in Slovak Republic

HUSEYNZADE ARPÁŠOVÁ

2023

JCEA

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Currently, most of the Slovak apple production is situated in the southern region of Slovakia and it consists of smallscale producers (mostly family farms) which raises challenges in production, finances, quality, and coordination within the supply chain. This study aims to investigate vertical price transmission (VPT) in this sector. Understanding VPT can help identify inefficiencies in apple's supply chain. A poor price response or a conflict in the transmission process can lead to unnecessary costs and lower profits for those involved in product production and consumption. The VPT has significant policy implications, particularly in relation to cost control and response. By monitoring the VPT, policymakers can identify areas that require intervention to promote fairness, efficiency, and market transparency. The study focuses on consumer and producer prices of apples to monitor price transmission as well as long-term relationships for the period from January 2006 to December 2021. Johansen's cointegration test confirms a long-term relationship between producer and consumer prices, the same as the Granger causality test which shows that prices share a common long-run trend and there is a cause-and-effect relationship between them. However, threshold autoregression results suggest that there is cointegration, but the symmetry hypothesis is rejected, so positive and negative consumer price shocks do not affect producer prices to the same extent.

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Asymmetry in Price Transmission: Evidence from the Wheat-Flour Supply Chain in Russia

Kharin

Morozov²

2021

AOL

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Price volatility has serious implications for economic welfare of various agents in the grain supply chain. The paper examines asymmetric price transmission along the wheat producer-processor supply chain in Russia using log-transformed monthly prices during the period of 2000-2019. Having specified linear asymmetric vector error correction model, we exposed the long-term cumulative asymmetry in price transmission, however, the hypothesis of short-term symmetry presence failed to reject. The analysis revealed dominant position for wheat producers and wholesalers over the wheat processors. Imperfect competition and their resulting market power, as well as the existence of a huge number of illegal processors are the main causes for asymmetric price transmission on the Russian wheat market.

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Vertical price transmission in the Nigerian cowpea market

Cited by 3 publications

References 36 publications

Asymmetry in Transaction Costs and Price Transmission: The Case of Cowpea Market in Burkina Faso

Asymmetry in Transaction Costs and Price Transmission: The Case of Cowpea Market in Burkina Faso

Vertical price transmission along the apple supply chain in Slovak Republic

Asymmetry in Price Transmission: Evidence from the Wheat-Flour Supply Chain in Russia

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