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

Lukanima, Benedicto; Swaray, Raymond

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.

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

• Journal Article Type: Article
• Acceptance Date: Dec 17, 2013
• Online Publication Date: Dec 27, 2013
• Publication Date: 2014-08
• Deposit Date: Aug 13, 2018
• Publicly Available Date: Aug 14, 2018
• Print ISSN: 0378-5920
• Electronic ISSN: 1467-9701
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 37
• Issue: 8
• Pages: 1152-1185
• DOI: https://doi.org/10.1111/twec.12124
• Public URL: https://hull-repository.worktribe.com/output/498897
• Publisher URL: https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12124
• Additional Information: Published Online: 2013-12-27