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Market reforms and commodity price volatility: the case of East African Coffee Market

Lukanima, Benedicto; Swaray, Raymond

Authors

Benedicto Lukanima

Dr Raymond Swaray R.Swaray@hull.ac.uk
Senior Lecturer (Associate Professor) in Economics

Abstract

The goal of this paper is to examine the impact of commodity market reforms on producer price volatility using evidence from the East African coffee market. The results, based on time-varying volatility models and key summary statistics, show that coffee market reforms in the East African Community (EAC) are associated with changes in producer price volatility and volatility persistence at both country and regional levels. However, reforms were not the only cause of changes in price volatility. The study further shows that reforms had different effects on prices volatilities of Arabica and Robusta varieties of coffee grown in individual EAC countries. These findings have wider implication for commodity market reforms and producer price stabilization policies in the EAC and coffee producing countries in sub-Sahara Africa.

Journal Article Type Article
Publication Date 2014-08
Print ISSN 0378-5920
Electronic ISSN 1467-9701
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 37
Issue 8
Pages 1152-1185
Institution Citation Lukanima, B., & Swaray, R. (2014). Market reforms and commodity price volatility: the case of East African Coffee Market. The World economy, 37(8), 1152-1185. https://doi.org/10.1111/twec.12124
DOI https://doi.org/10.1111/twec.12124
Publisher URL https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12124
Copyright Statement ©2018 University of Hull
Additional Information Published Online: 2013-12-27

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