World Summit on Management Sciences
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Accepted Abstracts

Rice Prices Shocks Transmission from International to Domestic Markets: An Evidence from Bamako and Kayes Rice Markets in Mali

Sossou Sheitan*
Cheikh Anta Diop University, Senegal

Citation: Sheitan S (2020) Rice Prices Shocks Transmission from International to Domestic Markets: An Evidence from Bamako and Kayes Rice Markets in Mali. SciTech Management Sciences 2020. Thailand

Received: November 16, 2019         Accepted: November 20, 2019         Published: November 20, 2019

Abstract

This study assessed the transmission of international price shocks to domestic prices in Bamako and Kayes markets. Threshold Autoregressive Model developed by Balke and Fomby (1997) was used in the study. The empirical analysis used monthly price data of Bamako and Kayes markets over the period January 2006 to September 2016. The results of descriptive statistics showed that during the period 2006-2016, the average price of imported rice were 313 CFA francs in Bamako and 297 CFA francs in Kayes, respectively. The average price for local rice were 328 CFA francs in Bamako and 387 CFA francs in Kayes. The empirical results showed that local rice price in Kayes as well as imported rice price in Bamako responded asymmetrically to international price changes. The increase of international price was more rapidly transmissible to domestic prices than its decrease. Better regulation of rice markets and more road infrastructure would limit the power of commercial intermediaries and contribute to a better functioning of market structures.
Keywords: International shocks, asymmetric adjustment, TAR model, rice, Mali