Agricultural markets integration and price transmission in West Africa: Evidence from a meta-analysis

Abstract

Over the past thirty years, the examination of market integration and price transmission has gained significant importance in West Africa. This rise in significance can be attributed to their role in evaluating the effects of market reform policies implemented by regional governments. Nonetheless, the influence of price transmission and market integration on the current food policies in West Africa and Ghana remains unclear. This research offers a comprehensive overview, drawing on an extensive analysis of 30 studies on price transmission and market integration published between 1997 and 2019. Through the application of Meta-Regression Analysis, our meta-analysis findings demonstrate that the degree of price transmission in West Africa's agricultural markets is relatively limited. The factors contributing to this low level of price transmission and integration in agricultural markets in West Africa include physical infrastructure, market information accessibility, institutional frameworks, levels of competition, market dominance, trade dynamics, conflicts and security concerns, government interventions, as well as export restrictions and bans. Consequently, it is imperative for the regional governments to prioritize the development of physical infrastructure, particularly the enhancement of road networks within the sub-region. Moreover, the expansion of Information and Communication Technology (ICT) tools, like mobile phones, and their effective utilization can significantly enhance access to market information related to agricultural produce across the region.