Normal view MARC view ISBD view

From market liberalization to market development: the need for market institutions in Ethiopia

By: Getnet, K.
Material type: materialTypeLabelArticlePublisher: 2008Subject(s): Ethiopia | Farmers' behaviors | Grain markets | Market development | Market reform | Producer prices In: Economic Systems v. 32, no. 3, p. 239-252Summary: Agricultural marketliberalization in the developing countries is entrusted with the objective of increasing agricultural production through improving the economic incentives of farmers and the participation of the private sector in economic activities. Nevertheless, the impact of marketliberalization on agricultural production may be limited due to high price risks and high transaction costs faced by economic agents, unless the markets have vested mechanisms to control such problems. Markets fulfill such controlling functions only when they are developed. To such extent, marketliberalization is only a necessary but not a sufficient condition to achieve policy objectives sought from the reform process. This study investigates the behavior of grain prices, grain markets, and farmers for a staple food crop around Ambo, Ethiopia, with the purpose of understanding the decision-making environment of economic agents observed during the post-liberalization period. The major evidence is of a liberalized grain marketing system that lacks important institutions and public goods necessary to reduce high price risk and high transaction costs faced by economic agents. In view of this, it is recommended to develop the markets through developing the marketinstitutions and through providing the public goods necessary for an efficient marketing system.Collection: Reprints Collection
Tags from this library: No tags from this library for this title. Log in to add tags.
    average rating: 0.0 (0 votes)
Item type Current location Collection Call number Status Date due Barcode Item holds
Article CIMMYT Knowledge Center: John Woolston Library

Lic. Jose Juan Caballero Flores

 

Reprints Collection Available
Total holds: 0

Agricultural marketliberalization in the developing countries is entrusted with the objective of increasing agricultural production through improving the economic incentives of farmers and the participation of the private sector in economic activities. Nevertheless, the impact of marketliberalization on agricultural production may be limited due to high price risks and high transaction costs faced by economic agents, unless the markets have vested mechanisms to control such problems. Markets fulfill such controlling functions only when they are developed. To such extent, marketliberalization is only a necessary but not a sufficient condition to achieve policy objectives sought from the reform process. This study investigates the behavior of grain prices, grain markets, and farmers for a staple food crop around Ambo, Ethiopia, with the purpose of understanding the decision-making environment of economic agents observed during the post-liberalization period. The major evidence is of a liberalized grain marketing system that lacks important institutions and public goods necessary to reduce high price risk and high transaction costs faced by economic agents. In view of this, it is recommended to develop the markets through developing the marketinstitutions and through providing the public goods necessary for an efficient marketing system.

English

Carelia Juarez

Reprints Collection

There are no comments for this item.

Log in to your account to post a comment.
baner

International Maize and Wheat Improvement Center (CIMMYT) © Copyright 2015. Carretera México-Veracruz. Km. 45, El Batán, Texcoco, México, C.P. 56237.
If you have any question, please contact us at CIMMYT-Knowledge-Center@cgiar.org

Centro Internacional de Mejoramiento de Maíz y Trigo (CIMMYT) © Copyright 2015. Carretera México-Veracruz. Km. 45, El Batán, Texcoco, México, C.P. 56237.
Si tiene cualquier pregunta, contáctenos a CIMMYT-Knowledge-Center@cgiar.org