TY  - JOUR
A1  - Haile, Mekbib Gebretsadik
A1  - Kalkuhl, Matthias
A1  - Algieri, Bernardina
A1  - Gebreselassie, Samuel
T1  - Price shock transmission
BT  - evidence from the wheat-bread market value chain in Ethiopia
JF  - Agricultural economics
N2  - This study assesses the degree of vertical price transmission along the wheat-bread value chain in Ethiopia. This is pursued by applying a vector error correction model and an impulse response analysis using monthly price data for the period 2000-2015. Our analysis considers transmission of price shocks across different market levels, including from the international and domestic wheat grain markets at the upstream to the domestic wheat bread market at the downstream of the value chain. The empirical findings indicate that significant cointegration exists across prices of the different market stages. There is a transmission from international prices to domestic prices at downstream markets, in particular to flour and bread prices. Prices at upstream markets are largely influenced by the domestic wholesale market. In general, the speed of adjustment is quite slow with a half-life of about one year for restoring the equilibrium price relationship. As price margins between the different market stages in the value chain have substantially decreased in the last 15 years, higher transmission, and thus exposure to international market shocks, can be expected in the future. The results also show that causal relationships exist between prices at different market stageswith the wholesale market identified as the key market level where prices and price expectations are formed.
KW  - Q02
KW  - Q11
KW  - Q13
KW  - L11
KW  - M31
KW  - Value chain
KW  - Price transmission
KW  - Impulse response
KW  - Wheat
KW  - Ethiopia
Y1  - 2017
U6  - https://doi.org/10.1111/agec.12373
SN  - 0169-5150
SN  - 1574-0862
VL  - 48
IS  - 6
SP  - 769
EP  - 780
PB  - Wiley
CY  - Hoboken
ER  -