Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain

Marco Letta, Emiliano Magrini () and Pierluigi Montalbano

Economics Bulletin, 2019, vol. 39, issue 1, 495-501

Abstract: Impact assessments of policy interventions on agricultural commodity prices are carried out by international organizations using nationwide measures which overlook the effects of spatial heterogeneity in incomplete markets. We introduce a multi-step methodology to build spatially-disaggregated nominal rates of protection in a data-scarce environment and test it along the maize value chain in Uganda. Results confirm that the spatial dispersion of farmers plays a key role in determining heterogeneity in nominal rates of protection. This finding has far-reaching policy implications: i) the assumption of a nationally-representative market pathway is unrealistic; ii) pan-national interventions may exacerbate, rather than reduce, price distortions.

Keywords: nominal rates of protection; spatial price heterogeneity; maize value chain; Uganda. (search for similar items in EconPapers)
JEL-codes: O1 Q1 (search for similar items in EconPapers)
Date: 2019-03-16
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