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Marco Letta, Emiliano Magrini and Pierluigi Montalbano
''Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain''
( 2019, Vol. 39 No.1 )
Impact assessments of policy interventions on agricultural commodity prices are carried out by international organizations using nationwide measures which overlook the effects of spatial heterogeneity in incomplete markets. We introduce a multi-step methodology to build spatially-disaggregated nominal rates of protection in a data-scarce environment and test it along the maize value chain in Uganda. Results confirm that the spatial dispersion of farmers plays a key role in determining heterogeneity in nominal rates of protection. This finding has far-reaching policy implications: i) the assumption of a nationally-representative market pathway is unrealistic; ii) pan-national interventions may exacerbate, rather than reduce, price distortions.
Keywords: nominal rates of protection, spatial price heterogeneity, maize value chain, Uganda.
JEL: O1 - Economic Development: General
Q1 - Agriculture: General
Manuscript Received : Dec 10 2018 Manuscript Accepted : Mar 16 2019

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