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Econometric Analysis of Asymmetric Price Transmission Using Threshold Cointegration Approach: A Case Study of Morocco’s Apple Markets
Ouahiba Elalaoui,
Abdelouafi Ibrahimy,
Aziz Fadlaoui,
Redouane Arrach
Issue:
Volume 3, Issue 5, September 2018
Pages:
94-102
Received:
21 August 2018
Accepted:
14 September 2018
Published:
22 October 2018
Abstract: The level of market integration between deficit and surplus markets is a key determinant of price stability and food security. Thus, market integration can be regarded as a way of assessing efficiency of agricultural markets. The current study intends to investigate the domestic market integration and explore the potential presence of asymmetric price adjustments between spatially separated markets. The paper employs threshold cointegration approach using monthly data of wholesale apples prices over the period from September 1993 to June 2017 in five major wholesale markets in Morocco. Study findings suggest that wholesale apples markets are significantly cointegrated, implying the presence of the long-run equilibrium relationships between the examined markets pairs. Considering the evidence as a whole, for five out of eight market pairings, the results reveal that the nature of price transmission exhibits significant asymmetric adjustments. Nonetheless, the empirical analysis does not always support the research hypothesis, stipulating that deficit market prices adjust more swiftly to price increases than to price decreases in surplus market because of the market power of intermediaries in the food marketing chain. Based on these results, the domestic market integration shows some signs of weakness, which may affect the progress of the sector. In this respect, further efforts should be made to enhance market performance so as to ensure an even balance between the production and marketing segment.
Abstract: The level of market integration between deficit and surplus markets is a key determinant of price stability and food security. Thus, market integration can be regarded as a way of assessing efficiency of agricultural markets. The current study intends to investigate the domestic market integration and explore the potential presence of asymmetric pr...
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Effects of Small-Scale Agricultural Crop Commercialisation on Rural Household Welfare in Tanzania: A Case Study of Liwale District, Lindi Region
Nelson Ochieng,
Aloyce Hepelwa
Issue:
Volume 3, Issue 5, September 2018
Pages:
103-111
Received:
8 September 2018
Accepted:
26 September 2018
Published:
22 October 2018
Abstract: This study aimed at examining the effect of crop commercialisation on rural households’ poverty in Tanzania. The household survey data was collected from a sample of 389 rural households. Commercialisation index was used to estimate the level of household crop commercialisation. The principal component analysis was used to develop a household welfare index which was then clustered to identify poor and non-poor households through cluster analysis, the method automatically guided the decision retaining two clusters by calculating the measure-of-fit that is Bayesian Information Criterion (BIC). To examine the factors affecting the household poverty status, a logistic model was employed. Results revealed that the majority (65.6%) of the households are poor. The level of crop commercialisation is averaged to 66% indicating a commercialised farming practice. The results further showed that crop commercialisation, women participation in crop income allocation, off-farm income, access to extension services and household size significantly reduce household poverty while household head’s age had an adverse effect. The study suggests that the small and medium agricultural processing units in rural areas should be given priorities and strengthened since they are crucial to promoting the level of commercialisation among rural households. Furthermore, in periods of sufficient and excess harvest, the crops trade restrictions with the neighbour countries should be eliminated to increase the level of commercialisation and earnings to the local rural farmers.
Abstract: This study aimed at examining the effect of crop commercialisation on rural households’ poverty in Tanzania. The household survey data was collected from a sample of 389 rural households. Commercialisation index was used to estimate the level of household crop commercialisation. The principal component analysis was used to develop a household welfa...
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Optimal Cropping Sequence in Pluriactive Non-specialised Vegetable Farms in the Northwest Region of Cameroon
Godlove Shu,
Jules René Minkoua Nzie,
Ernest L. Molua
Issue:
Volume 3, Issue 5, September 2018
Pages:
112-117
Received:
26 May 2018
Accepted:
4 October 2018
Published:
29 October 2018
Abstract: Cameroon champions the vegetable subsector in the Central African sub region both in output levels, export quantities and foreign exchange earnings. The country exports, formally and informally, fresh vegetables to neighboring countries like Nigeria, Central African Republic, Gabon and Equatorial Guinea. Besides ensuring food self-sufficiency, the primary intention of these pluriactive non-specialized vegetable farmers who also cultivate staple energy food crops as complementary and supplementary enterprises is to maximize farm profits subject to the numerous constraints. These constraints are further compounded by an acute incidence of climate variability, seasonal price fluctuations and poor farm planning. This study sought to find out an annual cropping pattern or sequence that maximizes annual returns and enhances the optimal allocation and utilization of farm resources. The study adopted the stratified random sampling technique to interview 120 vegetable farmers in the Northwest Region of Cameroon, from which pluriactive non-specialized were identified. This data was subjected to inferential statistical and dynamic programming analytical techniques. Theresults identified sixteen species of vegetable crops cultivated alongside energy food crops in the study area. The study further identified three cropping seasons in a year (March-June, July-October, and November-February) and suggested the prioritization of the tuber vegetable during the first cropping season, the leafy vegetables during the second cropping season and the fruit vegetables during the third cropping season. This optimal cropping pastern is highly responsive to climate weather risks and market shocks thus presenting potentials of yielding higher profits of up to 5 256 614.8 FCFA ((US$ 8761.0) per annum from pluriactive vegetable farming.
Abstract: Cameroon champions the vegetable subsector in the Central African sub region both in output levels, export quantities and foreign exchange earnings. The country exports, formally and informally, fresh vegetables to neighboring countries like Nigeria, Central African Republic, Gabon and Equatorial Guinea. Besides ensuring food self-sufficiency, the ...
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Exploring Agricultural Intensification: A Case Study of Nigerian Government Rice and Cassava Initiatives
Ndianabasi Samuel Udondian,
Elizabeth Jane Zimilia Robinson
Issue:
Volume 3, Issue 5, September 2018
Pages:
118-128
Received:
8 September 2018
Accepted:
28 September 2018
Published:
31 October 2018
Abstract: Food security is a major challenge in sub-Saharan Africa. In Nigeria, the most populous country in the region, the rate of food production lags behind the rate of population growth, resulting in high incidences of hunger, with more than half the population living below the poverty line. In response to this, the Nigerian government has introduced a number of agricultural initiatives designed to increase food production and move the country closer to self-sufficiency. The objective of this paper is to determine the extent to which these initiatives have resulted in sustainable improvements in productivity. This is done through the development of a simple analytical framework that deconstructs increases in production into yield increases and area expansion. Rice and cassava are used as case studies. The paper demonstrates that three key government initiatives have had little impact on yields, with increases in production driven largely by area increases, most likely at the expense of forested areas and the ecosystem services they provide. The findings suggest that Nigeria has not achieved sustainable intensification of its agriculture for the two case study crops of cassava and rice. Moreover, some of the government initiatives assessed here have coincided with periods of falling yield.
Abstract: Food security is a major challenge in sub-Saharan Africa. In Nigeria, the most populous country in the region, the rate of food production lags behind the rate of population growth, resulting in high incidences of hunger, with more than half the population living below the poverty line. In response to this, the Nigerian government has introduced a ...
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Review and System Construction of Chinese Food Security in the New Era
Issue:
Volume 3, Issue 5, September 2018
Pages:
129-134
Received:
19 August 2018
Accepted:
18 October 2018
Published:
19 November 2018
Abstract: Food is related to the national economy and people's livelihood. Food security is the "ballast stone" that maintains social stability and is an important foundation for national security. With the vigorous advancement of Chinese industrialization, urbanization, modernization, and informatization, Chinese food security and development are in trouble in the new era. There are ecological environmental pollution and declining quality of cultivated land, resource shortage and rigid growth of demand, insufficient subsidies and limited production scale and other issues. These problems will lead to a growing gap in grain supply and demand year by year, which to some extent restricts the sustainability of grain supply. At the same time, these problems have "crowding out effect" on grain scale production. Therefore, this paper analyzes the foothold, point of view, focus point and equilibrium point of Chinese food security strategy and grasp Chinese food security strategy from a macro perspective. On this basis, it makes a rational review of Chinese food security issues in the new era. A guarantee system is constructed based on the improvement of farmland protection system, the development of grain through science and education, the development of grain through ecology, use of two market resources, and increased subsidies, to ensure the long-term, stable and sustained security of Chinese grain.
Abstract: Food is related to the national economy and people's livelihood. Food security is the "ballast stone" that maintains social stability and is an important foundation for national security. With the vigorous advancement of Chinese industrialization, urbanization, modernization, and informatization, Chinese food security and development are in trouble...
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