An Analysis of Unreported Sales of Wheat in Sudan

Siddig A Salih

Australian Economic Papers, 1993, vol. 32, issue 60, 161-74

Abstract: As a typical LDC, the government of Sudan has explored several policy instruments to secure an adequate wheat supply to meet the increasing wheat demand in the country. Farmers are asked to deliver part of their domestic production at a procurement price less than that of the free market price. Consequently, farmers under-report their production and sell it to the free market at the risk of being caught cheating. A postulated model describing farmers' decisions on wheat production and the proportion sold illegally to the free market is examined using 1956-86 data. The analysis supports other findings that Sudanese government policies have discouraged production and, indeed, failed to achieve their designated goals. Copyright 1993 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Date: 1993
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