000 03738nab a22003977a 4500
001 G82921
003 MX-TxCIM
005 20231016165942.0
008 210820s2005 xxk|||p|op||| 00| 0 eng d
022 _a1574-0862 (Online)
022 _a0169-5150
024 8 _ahttps://doi.org/10.1111/j.1574-0864.2005.00463.x
040 _aMX-TxCIM
041 _aeng
090 _aCIS-4605
100 1 _aLangyintuo, A.S.
_9175
245 1 0 _aPotential impacts of the proposed West African monetary zone on cowpea trade
260 _aUnited Kingdom :
_bWiley,
_c2005.
340 _aPrinted|Computer File
500 _aPeer review
500 _aPeer-review: Yes - Open Access: Yes|http://science.thomsonreuters.com/cgi-bin/jrnlst/jlresults.cgi?PC=MASTER&ISSN=0169-5150
500 _aSupplement
520 _aMember countries of the Economic Community of West African States (ECOWAS) are expected to form a West African Monetary Zone (WAMZ) by December 2009, whereby members would use a common currency in an attempt to promote regional integration. Evidence suggests that reduction in transaction cost as a result of a decrease (or elimination) of nontariff barriers (NTBs) and real interest rates in response to elimination of exchange rate differentials positively influence trade. The objective of this study is to quantify the effects of (a) a 7% real interest rate on capital and (b) zero NTBs within ECOWAS countries, on cowpea (Vigna unguiculata (L.) Walp) trade to provide a measure of the potential impacts of the WAMZ on grain trade. The study applies a spatial and temporal price equilibrium model formulated in a mixed complementary programming (MCP) framework and solved using GAMS/PATH. The focus is on the Nigerian cowpea grainshed (NCG) comprising Benin, Burkina Faso, Côte d'Ivoire, Ghana, Mali, Niger, Nigeria, and Togo in ECOWAS, and Cameroon, Chad, and Gabon in the Central African Economic and Monetary Community (CAEMC). The results show that if WAMZ results in reduced real interest rates within ECOWAS, the larger of the two monetary unions, consumers in the relatively larger coastal economies and producers in the smaller Sahelian economies would benefit while all others lose. However, net social welfare would increase by 0.19% over the base case of 6.3 billion US$ (bUS$). Removing NTBs among countries in the larger trading bloc may alter the pattern of cowpea flows with total trade volume increasing by 3%, but inter-bloc trade decreasing by about 8%. The net total regional social welfare would increase by 0.14%, or 15 million US$ (mUS$), benefiting only consumers in importing countries and producers in exporting countries. The results emphasize the importance of specialization based on regional comparative advantage, but also draw attention to the need to devise ways to ensure acceptable welfare distribution among producers and consumers in line with policy objectives of the individual countries within the proposed WAMZ. Finally, this article contributes to the literature on the application of spatial and temporal models incorporating both ad valorem tariffs and differential interest rates in developing economies.
536 _aSocioeconomics Program
546 _aText in English
591 _aJohn Wiley|0601
650 7 _2AGROVOC
_95144
_aCowpeas
650 7 _2AGROVOC
_927389
_aInterest rates
650 7 _2AGROVOC
_924009
_aTariffs
651 7 _2AGROVOC
_91316
_aAfrica
700 1 _aLowenberg-DeBoer, J.
_912648
700 1 _aArndt, C.
_922256
773 0 _tAgricultural Economics
_n633853
_gv. 33, no. s3, p. 411-421
_dUnited Kingdom : Wiley, 2005.
_wG444456
_x1574-0862
856 4 _yAccess only for CIMMYT Staff
_uhttps://hdl.handle.net/20.500.12665/1108
942 _cJA
_2ddc
_n0
999 _c26115
_d26115