No 2/2016, June

Assessment of Rice Market Competiveness Using Horizontal Price Transmission: Empirical Evidence from Southern Region of Nigeria


The study examined the horizontal price transmission and market integration between the local and foreign rice market in the Southern region of Nigeria. The study used average monthly prices of local and foreign rice in the rural and urban markets from January 2005 to June 2014. The findings show that, prices of local and foreign rice in the rural and urban markets have constant exponential growth rate of 0.60%. The Pearson correlation coefficient revealed a strong positive relationship between prices of local and foreign rice in both rural and urban markets. The cross-product Granger causality test revealed bidirectional relationship between prices of local and foreign rice in the region. The results of the cross co-integration test revealed the presence of co-integration between prices of the two products. The coefficients of the price variable in the cross co-integration equations for the local and foreign rice markets converge to the law of one price which connotes instantaneous price adjustment and competitiveness. The result of the cross - product error correction model also confirmed the existence of the short run market integration between the two markets. The study established the fact that, price of local rice competes favorably with its foreign counter part and thus a perfect substitute especially in the rural area. Based on the finding, it is recommended that, short term policies should be used to intervene in the rice sub sector in the region. Policies aimed at boosting local production of rice should be encouraged, while value additions in the domestic produced rice should be pursuit vigorously.JEL Classification: Q13

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Economic Comparison of Agricultural Sector of Eurasian Countries – Is There Any Potential for Development Through Economic Cooperation?


Eurasia represents an important economic region for the majority of the post-Soviet republics. The structure of their economies is highly dissimilar and reflects the status of agriculture. The aim of the paper is to analyse the relation between agriculture index and GDP per capita Using the basic economic indicators in agriculture (contribution of agriculture to GDP, share of employment in agriculture, agriculture value added per worker and share of rural population) as well as the cluster analysis, the countries were divided into four groups. There are sub-groups within the post-Soviet republics, differing considerably in the status of agriculture in their national economy. A negative correlation between GDP per capita (PPP) and the level of the agriculture index has been proved in the monitored countries.

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Oil Prices, Exchange Rate and Prices for Agricultural Commodities: Empirical Evidence from Russia


In this paper, we investigate long and short-term impact of changes in oil prices and the exchange rate on prices of seven groups of agricultural products in Russia (buckwheat, grain crops, potatoes, oat, wheat, rye, barley). In this paper, Granger causality approach is applied to test long-run interlinkages with monthly data from January 1999 to October 2015. For testing the response of agricultural prices to sudden shocks in oil prices and exchange rate in the short run, we use impulse-response techniques. The results of impulse response analysis show that agricultural prices are not particularly sensitive to changes in oil prices and the exchange rate of Russian ruble in the short term, except for imported commodities. In the long run, Granger causal relationship between agricultural prices and oil prices is missing, and with exchange rate is observed only in case of imported agricultural goods.

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Welfare Analysis of Lifting the GM Ban in Russia


Use of genetically modified crops is prohibited in Russia, however, Russian politicians are currently discussing this technology. This article evaluates the potential welfare effects of adopting genetically modified crops in Russia, focusing on the potential benefits to Russian producers who adopt herbicide tolerant corn and soybeans. Calculations are based on supply and demand functions of current market situations and their potential shifts. The results quantify the potential monetary gains from open markets to genetic engineering technology and explain the potential additional costs related to technology adoption.

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Serbian Large Agribusiness Corporations Knocking at the Door of E-Agribusiness Revolution


Transformation of large agribusiness corporations in Serbia is at its beginning. Institutional investors are taking control of these firms through foreign direct investments. Corporate reorganization of agribusinesses starts up by introducing efficient management, information technology, Net and e-commerce. IT environment generates a new business model, which creates connections in Serbia between the large agribusinesses, business processes and IT. The market of agricultural production in Serbia is rapidly changing and adapting itself to the global trends, mainly to the Internet economy. The speed of transactions and volume of information is increasing dramatically. It is important to explain the basic economic principles at macro and micro levels. Such revolutionary changes affect the operations and management of agribusiness on the Internet and outside of it. The purpose of this work is to stimulate further research in these processes, and to use the acquired knowledge as a tool for efficient corporate agribusiness management.

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Agricultural Production and Trade Structure Profile in Democratic Republic of Congo (DRC)


The African region represents the weak point of the world economy. Many African countries have still not finished the process of transforming their economy. Agriculture represents only a minor portion of their economies’ performance – however it is still a key sector of the economy (especially considering the number of people working in agriculture or people representing the agricultural population). The agricultural sector in many sub-Saharan countries is extremely sensitive and its stability affects the stability of the whole region. A very good example representing sub-Saharan Africa is the Democratic Republic of Congo (DRC). It is a country with a lot of potential, but it is classified among the poorest countries in the world. Its economy is extremely weak (despite its significant share in total GDP formation value), and underdeveloped. The share of agriculture in total GDP formation is over 42.5%. The number of people living in rural areas represents over 45 million out of a total of 75 million. The number of people working in agriculture is over 60% of the total economically active population. The economy of the country is extremely poor and fragile, mainly because of political instability. The aim of this paper is firstly to specify the position of agriculture in the DRC economy, and also to specify the production and trade commodity structure in relation to other African countries. The paper’s ambition is to identify the most perspective commodities (groups of commodities), both for production and also for trade, and to recommend such a production and trade profile which would allow the DRC the possibility of improving its competitiveness - not only in relation to other African countries, but also in relation to the global market. The production and trade commodity structures are analysed through the application of the BCG method and competitiveness analysis. In relation to these objectives, the paper provides the following conclusions. The position of agriculture in the DRC economy is stable one. Furthermore, agriculture probably represents the most stable part of the DRC economy. According to the portfolio and competitiveness analyses, the most important commodity items for the DRC are the following: Rice paddy, Maize, and Cassava. The most competitive trade items are particularly Coffee, Tea, and Cocoa, and Sugar Raw centrifugal. The most notable weakness of DRC agriculture is the production of Wheat, Beverages, Poultry Meat, and Fixed Vegetable Oils.

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The Analysis of the Age Structure of Regional Fixed Capital in the Agriculture


The paper deals with an estimate and analysis of the value of regional net fixed capital stock and the age structure of machinery and equipment in Czech agriculture. In order to perform such analysis, the official model of perpetual inventory method is transformed into the Markov chain model and applied on regional data separately. Regional net fixed capital stock is presented for the period of 2008-2013.The development of the average age of machinery and equipment comprises a potential indicator of the modernisation process in the industry. The analysis of the age structure is based on the structure heterogeneity indicator. For these purposes, the real age structure in each Czech region is compared with the theoretical stable and stationary structure. Currently, the most heterogeneous age structure of machinery and equipment occurs in Prague and the Karlovy Vary region.

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Integrated ICTs for Water Basins Management in Southern Africa: Systematic Review and Meta-analyses for Perceived Relevance Criteria


User-focused design and an implementation of a computer-based Information System (IS) or Information Technology (IT) are considered to play a key role in enhancing adoption, supporting activities and contributing to the sector specific sustainability goals. However, there are general concerns over the practical applications derived from records of failure rates of IS/IT projects in the developing world. This paper aggregates and analyzes stakeholders’ perceived usefulness criteria that were documented from water basin focusing on IS and related projects in Southern Africa. Systematic literature reviews and meta-analysis were adopted for data collection and analyses. Literature with academic, practice and hybrid viewpoints was collected from five water basins in Southern Africa. Designed data collection flow chart guided the search for appropriate literature. Analyses of the data were performed by using Statistical Package for Social Sciences (SPSS). Results of the search were classified and presented basing on the domain, yearly waves from 2000 to 2015, trans-basin nature and basin of focus. Literature was distributed across the classes at different magnitudes. The study has found out that relevance criteria as measure of usefulness have been incorporated in designing and implementing the IS/IT projects in the river basins. However, incorporation of relevance criteria was periodically increasing with technological advancement and increasing complexity of managing the water basins. In general, it was responsive to increasing challenges of water resources in the developing countries. This anticipated better results at the levels of output, outcome and impacts of IS/IT projects in the Southern Africa. The study concludes that the current trends of incorporation of the relevance criteria in designing and implementing the IS/IT projects on water resources are potential for impact-based interventions in Southern Africa.

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Mobile Broadband for the Farmers: A Case Study of Technology Adoption by Cocoa Farmers in Southern East Java, Indonesia


The objective of this paper is to examine the factors that affect Indonesia cocoa farmer intention to use mobile phone application. The main factors examined in this study are perceived usefulness (PU), perceived ease of use (PEOU), business factors and individual factors. The study sample consists of 191 respondents in thirteen cocoa farmer centers in southern East Java. Data were analyzed by employing Structural Equation Modeling (SEM). The findings revealed that the user intention on adopting mobile phone application especially by cocoa farmers is significantly impacted by social influence and this is in line with the massive growth the usage of social media application in Indonesia, other factors that determine the adoption are competitiveness pressure and cost perception. This research has a limitation that the generalizability of the findings is limited to the geographical scope of the sample. Based on findings, as the practical implications of this study, to get a higher rate on the adoption of mobile phone application, stakeholders need to ensure the benefit of technology adoption by providing more secure, more comfort, and more sounds like cloud ecosystem to increase the perception on ease of use and perception of usefulness. Novelty of this study is the combination of business factors and individual factors on the existing model of Technology Acceptance Model (TAM).

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Do Digital Public Services Matter? A Comparative Study of the Czech Republic and the Republic of Kazakhstan


Provision of quality public services has been in great concern of many governments for longer period of time. An interesting fact could be observed that, as to the demand and supply of digital public services, some developed European countries could lag behind some upper-middle-income countries. The paper explores differences in digital public services provision (supply side) and use (demand side) between the Czech Republic and Kazakhstan. A document analysis was done and a comparative study based on secondary data was elaborated. We can confirm that even a country from outside of the EU (Kazakhstan) can provide a better organized supply of digital services than an EU member state (Czech Republic) at least on the national level. According to the Digital Economy and Society Index (DESI) benchmarking, there are also significant discrepancies among national, regional and local services in the EU. The same phenomenon is also reported from transitional countries like Kazakhstan.

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