Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua
In 2004 the Central American countries of Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica, and the Dominican Republic signed the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) with the United States and are currently neg...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2011/03/17394091/integrating-central-american-international-food-markets-analysis-food-price-transmission-honduras-nicaragua http://hdl.handle.net/10986/18018 |
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okr-10986-18018 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADDITIVES AGRICULTURAL PRODUCTION AGRICULTURE BANANAS BEEF CENTRAL BANK CLIMATE CHANGE COCOA COFFEE PRICES COMMODITIES COMMODITY COMPETITIVE MARKET COMPETITIVENESS CONSUMER DEMAND CONSUMER GOODS CONSUMER PRICE CONSUMER PRICES CORN COST INCREASE COST STRUCTURES DAIRY DEMAND CURVE DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DRIVERS EGGS ELASTICITIES ELASTICITY ENVIRONMENTAL SUSTAINABILITY EXCHANGE RATES EXPENDITURES EXPORT MARKET FINANCIAL CRISIS FINANCIAL MARKET FOOD AVAILABILITY FOOD CHAIN FOOD MARKETS FOOD POLICY FOOD PRICE FOOD PRICES FOOD PRODUCT FOOD PRODUCTION FOOD PRODUCTS FREE TRADE FREE TRADE AGREEMENT GRAINS GROSS DOMESTIC PRODUCT GROWTH RATES INCOME INPUT PRICES INSURANCE INTERNATIONAL MARKET INTERNATIONAL MARKETS INVENTORY LIBERALIZATION MAIZE MARGINAL COST MARKET DISTORTIONS MARKET INTEGRATION MARKET POWER MARKET PRICE MARKET RISKS MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES MARKETING MEAT MONOPOLY NOISE PACKING PADDY PARTICULAR COUNTRIES PORK PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE BEHAVIOR PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INDICES PRICE LEVELS PRICE LISTS PRICE SERIES PRICE SUBSIDY PRICE SUPPORT PRICE VARIATIONS PRICE VOLATILITY PRODUCER PRICE PRODUCER PRICE INDEX PRODUCER PRICES PRODUCT QUALITY PUBLIC POLICIES PUBLIC POLICY PURCHASING RAIL RAIL TRANSPORT REPUTATION SALE SILAGE SOCIAL COSTS SUBSTITUTE SUBSTITUTION SUGAR SUGAR CANE SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGES TRANSACTION COSTS TRANSPORT TRANSPORT COSTS TRANSPORT EFFICIENCY TRANSPORT SECTOR TRANSPORTATION TRUCK TRANSPORT TRUCKS TRUE VEHICLE VEHICLES VOLATILITY WHEAT WHEAT FLOUR WHOLESALER WHOLESALERS |
| spellingShingle |
ADDITIVES AGRICULTURAL PRODUCTION AGRICULTURE BANANAS BEEF CENTRAL BANK CLIMATE CHANGE COCOA COFFEE PRICES COMMODITIES COMMODITY COMPETITIVE MARKET COMPETITIVENESS CONSUMER DEMAND CONSUMER GOODS CONSUMER PRICE CONSUMER PRICES CORN COST INCREASE COST STRUCTURES DAIRY DEMAND CURVE DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DRIVERS EGGS ELASTICITIES ELASTICITY ENVIRONMENTAL SUSTAINABILITY EXCHANGE RATES EXPENDITURES EXPORT MARKET FINANCIAL CRISIS FINANCIAL MARKET FOOD AVAILABILITY FOOD CHAIN FOOD MARKETS FOOD POLICY FOOD PRICE FOOD PRICES FOOD PRODUCT FOOD PRODUCTION FOOD PRODUCTS FREE TRADE FREE TRADE AGREEMENT GRAINS GROSS DOMESTIC PRODUCT GROWTH RATES INCOME INPUT PRICES INSURANCE INTERNATIONAL MARKET INTERNATIONAL MARKETS INVENTORY LIBERALIZATION MAIZE MARGINAL COST MARKET DISTORTIONS MARKET INTEGRATION MARKET POWER MARKET PRICE MARKET RISKS MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES MARKETING MEAT MONOPOLY NOISE PACKING PADDY PARTICULAR COUNTRIES PORK PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE BEHAVIOR PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INDICES PRICE LEVELS PRICE LISTS PRICE SERIES PRICE SUBSIDY PRICE SUPPORT PRICE VARIATIONS PRICE VOLATILITY PRODUCER PRICE PRODUCER PRICE INDEX PRODUCER PRICES PRODUCT QUALITY PUBLIC POLICIES PUBLIC POLICY PURCHASING RAIL RAIL TRANSPORT REPUTATION SALE SILAGE SOCIAL COSTS SUBSTITUTE SUBSTITUTION SUGAR SUGAR CANE SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGES TRANSACTION COSTS TRANSPORT TRANSPORT COSTS TRANSPORT EFFICIENCY TRANSPORT SECTOR TRANSPORTATION TRUCK TRANSPORT TRUCKS TRUE VEHICLE VEHICLES VOLATILITY WHEAT WHEAT FLOUR WHOLESALER WHOLESALERS Arias, Diego De Franco, Mario A. Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua |
| geographic_facet |
Latin America & Caribbean |
| relation |
LCSSD occasional paper series on food prices; |
| description |
In 2004 the Central American countries
of Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica,
and the Dominican Republic signed the Dominican
Republic-Central America Free Trade Agreement (DR-CAFTA)
with the United States and are currently negotiating another
agreement with the European Union and others. This study
examines the dynamics among international and domestic food
markets by assessing the transmission of international
prices to domestic prices of key agriculture commodities in
Honduras and Nicaragua. It analyzes to what degree, if at
all, a change in the international price of a given food
product influences the domestic price of that same good, at
the level of the consumer and producer and in different
regions in each country. This analysis provides important
evidence of the price dynamics that guide public policy
recommendations for a complementary agenda of agriculture
trade liberaliza-tion in the region. There are two methods
for analyzing the relationship between international and
domestic prices. The first is to conduct a price wedge
analysis-to evaluate the difference between international
and domestic prices. The second method is to conduct a price
transmission analysis by analyzing the variation in the
percent growth of international versus domestic prices.
Evidence from Nicaragua suggests that for most of the
agriculture supply chains studied (except for beans) there
is little competition in the country's domestic market
structure. A few Nicaraguan companies own the majority share
of the market, both to purchase and export agricultural
products and to import and sell food domestically. Obtaining
information about the structure of domestic agriculture and
food markets could shed light on country-specific
impediments from domestic market structure to increasing
agriculture growth, reducing poverty, and improving rural
competitiveness. Information on domestic market structure
was difficult to obtain for this study, particularly for
Honduras. But, even in a context where the domestic market
structure concentrates purchasing and selling power in a few
agribusiness companies, price transmission could be high. |
| format |
Publications & Research :: Working Paper |
| author |
Arias, Diego De Franco, Mario A. |
| author_facet |
Arias, Diego De Franco, Mario A. |
| author_sort |
Arias, Diego |
| title |
Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua |
| title_short |
Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua |
| title_full |
Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua |
| title_fullStr |
Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua |
| title_full_unstemmed |
Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua |
| title_sort |
integrating central american and international food markets : an analysis of food price transmission in honduras and nicaragua |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2011/03/17394091/integrating-central-american-international-food-markets-analysis-food-price-transmission-honduras-nicaragua http://hdl.handle.net/10986/18018 |
| _version_ |
1764435940341710848 |
| spelling |
okr-10986-180182021-04-23T14:03:35Z Integrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua Arias, Diego De Franco, Mario A. ADDITIVES AGRICULTURAL PRODUCTION AGRICULTURE BANANAS BEEF CENTRAL BANK CLIMATE CHANGE COCOA COFFEE PRICES COMMODITIES COMMODITY COMPETITIVE MARKET COMPETITIVENESS CONSUMER DEMAND CONSUMER GOODS CONSUMER PRICE CONSUMER PRICES CORN COST INCREASE COST STRUCTURES DAIRY DEMAND CURVE DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DRIVERS EGGS ELASTICITIES ELASTICITY ENVIRONMENTAL SUSTAINABILITY EXCHANGE RATES EXPENDITURES EXPORT MARKET FINANCIAL CRISIS FINANCIAL MARKET FOOD AVAILABILITY FOOD CHAIN FOOD MARKETS FOOD POLICY FOOD PRICE FOOD PRICES FOOD PRODUCT FOOD PRODUCTION FOOD PRODUCTS FREE TRADE FREE TRADE AGREEMENT GRAINS GROSS DOMESTIC PRODUCT GROWTH RATES INCOME INPUT PRICES INSURANCE INTERNATIONAL MARKET INTERNATIONAL MARKETS INVENTORY LIBERALIZATION MAIZE MARGINAL COST MARKET DISTORTIONS MARKET INTEGRATION MARKET POWER MARKET PRICE MARKET RISKS MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES MARKETING MEAT MONOPOLY NOISE PACKING PADDY PARTICULAR COUNTRIES PORK PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE BEHAVIOR PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INDICES PRICE LEVELS PRICE LISTS PRICE SERIES PRICE SUBSIDY PRICE SUPPORT PRICE VARIATIONS PRICE VOLATILITY PRODUCER PRICE PRODUCER PRICE INDEX PRODUCER PRICES PRODUCT QUALITY PUBLIC POLICIES PUBLIC POLICY PURCHASING RAIL RAIL TRANSPORT REPUTATION SALE SILAGE SOCIAL COSTS SUBSTITUTE SUBSTITUTION SUGAR SUGAR CANE SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGES TRANSACTION COSTS TRANSPORT TRANSPORT COSTS TRANSPORT EFFICIENCY TRANSPORT SECTOR TRANSPORTATION TRUCK TRANSPORT TRUCKS TRUE VEHICLE VEHICLES VOLATILITY WHEAT WHEAT FLOUR WHOLESALER WHOLESALERS In 2004 the Central American countries of Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica, and the Dominican Republic signed the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) with the United States and are currently negotiating another agreement with the European Union and others. This study examines the dynamics among international and domestic food markets by assessing the transmission of international prices to domestic prices of key agriculture commodities in Honduras and Nicaragua. It analyzes to what degree, if at all, a change in the international price of a given food product influences the domestic price of that same good, at the level of the consumer and producer and in different regions in each country. This analysis provides important evidence of the price dynamics that guide public policy recommendations for a complementary agenda of agriculture trade liberaliza-tion in the region. There are two methods for analyzing the relationship between international and domestic prices. The first is to conduct a price wedge analysis-to evaluate the difference between international and domestic prices. The second method is to conduct a price transmission analysis by analyzing the variation in the percent growth of international versus domestic prices. Evidence from Nicaragua suggests that for most of the agriculture supply chains studied (except for beans) there is little competition in the country's domestic market structure. A few Nicaraguan companies own the majority share of the market, both to purchase and export agricultural products and to import and sell food domestically. Obtaining information about the structure of domestic agriculture and food markets could shed light on country-specific impediments from domestic market structure to increasing agriculture growth, reducing poverty, and improving rural competitiveness. Information on domestic market structure was difficult to obtain for this study, particularly for Honduras. But, even in a context where the domestic market structure concentrates purchasing and selling power in a few agribusiness companies, price transmission could be high. 2014-04-22T21:43:43Z 2014-04-22T21:43:43Z 2011-03-17 http://documents.worldbank.org/curated/en/2011/03/17394091/integrating-central-american-international-food-markets-analysis-food-price-transmission-honduras-nicaragua http://hdl.handle.net/10986/18018 English en_US LCSSD occasional paper series on food prices; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Latin America & Caribbean |