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Global price transmission in Senegal’s groundnut markets: can smallholders benefit from high international prices?

Tankari, Mahamadou Roufahi (2012): Global price transmission in Senegal’s groundnut markets: can smallholders benefit from high international prices?

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Abstract

In this paper, we seek to know whether the smallholders in Senegal can benefit from the high world prices. By means of Enders and Siklos (2001) approach, we analyzed the asymmetry of price transmission from the global market to the Dakar market which is the central market in Senegal. Moreover, the transmission from the central market to the local markets is studied. Our findings show that the groundnuts national central market is not integrated to the international market. Otherwise, the transmission between the central market and local markets of groundnuts is symmetric. Furthermore, it takes two months for a shock to be fully transmitted to local markets. Thus, it will be possible for the smallholders to benefit from the high world groundnut prices as the local markets and the central market are well integrated if this later and the international one are integrated.

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