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Working Paper

What Drives Local Food Prices? : Evidence from the Tanzanian Maize Market

GROWTH RATES ECONOMIC GROWTH OIL PRICE DOMESTIC SOURCES COMMODITY EXPORT PRICE LEVELS COST OF PRODUCTION RESPONSE TO CLIMATE CHANGE FAMINES INCOME INTEREST AGRICULTURAL PRODUCTION EXTERNAL PRICE EXCHANGE PRICE SETTING DOMESTIC MARKET DEVELOPING COUNTRIES FOOD POLICY INCENTIVES WORLD MARKETS AGRICULTURAL ECONOMICS PRICING DOMESTIC PRICE PRICE MARKET INFRASTRUCTURE PRICE UNCERTAINTY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE MARKET PARTICIPANTS MAIZE FOOD MARKETS OIL PRICES CEREALS COMMERCIALIZATION DEVELOPMENT ECONOMICS FOOD POLICY RESEARCH LOW-INCOME COUNTRIES PRICING POLICY PRICE VOLATILITY FOOD PRICE SURPLUS PRODUCTS DEMOCRACY SUPPLY SHOCKS MONETARY FUND MARKETING MARKETS CONNECTIVITY IMPORTS PRODUCT FOOD POLICIES FAMINE PRICING POLICIES FOOD AID SOYBEAN TAXES PRICE CHANGE CLIMATE VARIABILITY DEREGULATION FOOD PROCESSING FACILITIES CONSUMPTION MARKET ANALYSIS SUBSTITUTE FOOD SECURITY CLIMATE CHANGE POLICIES DOMESTIC MARKETS INTERNATIONAL TRADE VOLATILITY MARKET CONDITIONS FUTURE MARKET PRICES VALUE THIRD WORLD ECONOMIC DATA CLIMATE ANIMAL FEED DEMAND LOWER PRICE CONSUMER PRICE PRICE CHANGES AGRICULTURE INCOMES PRICE SPREAD FUEL PRICES PRICE ADJUSTMENT AVERAGE PRICE MARKET FOOD SUPPLY CHAIN SMALL COUNTRY POLICY OUTPUT PRICE MOVEMENTS EXTERNAL MARKET FOOD SURPLUS TRADE DOMESTIC PRICES SECURITY CORN LIQUID MARKET FOOD CROPS LOWER PRICES SHARE FOOD SUPPLY SUPPLY EXTERNAL SHOCKS COMMODITY MARKETS WHEAT FOOD AVAILABILITY INVESTMENTS MARKET INTEGRATION RICE CONSUMER PRICE INDEX CIVIL WAR COMMODITIES ARBITRAGE FOOD PRICES PRICE CONTROLS EXTERNAL MARKETS FOOD PROCESSING PRICE INDEX COMMODITY PRICES COMMODITY FOOD STAPLES WORLD MARKET PRICES MARKET FORCES SPREAD STORAGE
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World Bank, Washington, DC
Africa | Tanzania
2015-07-17T19:43:23Z | 2015-07-17T19:43:23Z | 2015-06

This study quantifies the relationship between Tanzanian and external maize markets while also accounting for domestic influences. It concludes that external influences on domestic prices originate from regional, rather than global, markets. It also shows that, compared to external factors, domestic factors exert a greater influence on Tanzanian maize markets. Further, the mechanisms through which trade policies influence maize markets involve interactions with both external market shocks and domestic weather shocks. Overall, it provides evidence that the intermittent imposition of export bans in Tanzania has had adverse impacts on its maize markets, and consequently, on the development of its agrarian economy.

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