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Journal of Agricultural Economics and Rural Development
Market information services and spatial asymmetry price transmission in Togolese maize market
Department of Agricultural Economics, Agricultural College, University of Lomé, Lomé, Togo
Accepted 18 October 2017
Citation: Yovo K (2017). Market information services and spatial asymmetry price transmission in Togolese maize market. Journal of Agricultural Economics and Rural Development, 3(3): 259-269.
Copyright: © 2017 Yovo K. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.
This paper examined the asymmetry price transmission in maize market in order to understand how it has been affected by prices dissemination issued by the market information system since 2008 in Togo. To this end, we use concurrently the symmetric error correction model (ECM) of Engle and Granger and the asymmetric error correction model of Enders and Granger (AECM) to evaluate the prices transmission. The monthly retail maize prices collected from ten markets for the period without service (2000-2007) and the period with service (2008-2015) are considered. The results show that despite of price dissemination, the asymmetric price transmission still dominates the maize market in Togo. In fact, neither the price adjustment speed nor the asymmetric transmission of positive and negative variations of prices did not significantly change during the prices dissemination period. Through the collusive behaviour of wholesalers and the agreements on buying and selling prices in maize markets, some actors may exert some market power which dampens the prices dissemination effect. Even though the overall effect is mitigated, the results suggested that the market information services are not useless. They need to be improved in order to increase the efficiency of the functioning of maize market in Togo.
Keywords: Market information system, Asymmetric price transmission, maize markets, Togo