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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.

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