Spatial Price Transmission and Market Integration

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in Agricultural Markets after Liberalization in Ghana: Evidence from Fresh Tomato Markets

The global agricultural commodity price shock of 2007/08 spurred renewed interest in price transmission and market integration analysis.

While prices in ‘barometer’ markets such as London and Chicago clearly peaked sharply during this period, the resulting implications for poverty and hunger depend on whether these peaks were transmitted to interior markets of developing countries.

A number of studies examine how prices for grains and oilseeds are transmitted from international markets to key import locations in developing countries, but studies of price transmission for fruits and vegetables between producing and consuming regions within developing countries are lacking.

This book fills the gap by empirically providing an account and evidence of the implications of Ghana’s trade liberalisation policy on price transmission and market integration in tomato markets in Ghana.

The available evidence is useful for the contentious debate on whether trade liberalisation is solely responsible for the signals of market failure for commodities with import substitutes, such as tomato in Ghana, while proposed measures aim at enhancing the performance of tomato markets to benefit producers.

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