What Drives Local Food Prices? Evidence from the Tanzanian Maize Market

50 Pages Posted: 20 Apr 2016

See all articles by John Baffes

John Baffes

World Bank

Varun Kshirsagar

Independent

Donald Mitchell

World Bank - Development Economics Group (DEC)

Date Written: June 26, 2015

Abstract

This study quantifies the relationship between Tanzanian and external maize markets while also accounting for domestic influences. It concludes that external influences on domestic prices originate from regional, rather than global, markets. It also shows 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, it provides 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: Commodity Risk Management

Suggested Citation

Baffes, John and Kshirsagar, Varun and Mitchell, Donald, What Drives Local Food Prices? Evidence from the Tanzanian Maize Market (June 26, 2015). World Bank Policy Research Working Paper No. 7338. Available at SSRN: https://ssrn.com/abstract=2623780

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

Varun Kshirsagar

Independent ( email )

No Address Available

HOME PAGE: http://www.linkedin.com/in/varunkshirsagar/

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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