Domestic and External Drivers of Maize Prices in Tanzania

48 Pages Posted: 18 Feb 2015 Last revised: 21 Mar 2015

See all articles by John Baffes

John Baffes

World Bank

Varun Kshirsagar

Independent

Donald Mitchell

World Bank - Development Economics Group (DEC)

Date Written: March 20, 2015

Abstract

We quantify the relationship between Tanzanian and external maize markets while also accounting for domestic influences. We conclude that external influences on domestic prices originate from regional, rather than global, markets. We also show that, compared to external factors, domestic factors exert a greater influence on Tanzanian maize markets. Further, the mechanisms through which trade policies influence maize markets involve interactions with both external market shocks and domestic weather shocks. Overall, we provide evidence that the intermittent imposition of export bans in Tanzania has had adverse impacts on its maize markets, and consequently, on the development of its agrarian economy.

Keywords: Export ban, Food prices, Weather anomalies, Price transmission, Tanzania

JEL Classification: E31, O13, Q02, Q13, Q18

Suggested Citation

Baffes, John and Kshirsagar, Varun and Mitchell, Donald, Domestic and External Drivers of Maize Prices in Tanzania (March 20, 2015). Available at SSRN: https://ssrn.com/abstract=2565953 or http://dx.doi.org/10.2139/ssrn.2565953

John Baffes (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/jbaffes

Donald Mitchell

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/dmitchell

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