Testing for market power in the markets for potato in Burundi, pp. 149-176,
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Date
2020-06
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Publisher
UB, Cahiers du CURDES
Abstract
Regional trade integration that lowers trade barriers plays a major role in boosting country's trade performance and reducing food insecurity. Countries engaging in such regional free trade must be competitive in order to gain from it. This paper investigates the level of competitiveness between Rwanda and Burundi, EAC member-States, in Irish potato trade. The methodology is the
application of New Empirical Industrial Organization (NEIO) theory on time series data (1990-2010). The results. showed that the coefficient of conjectural variation 'A, is 0.23, implying a weak oligopolistic market. Quantity of imported potatoes from Rwanda negatively influences the potato retail price and the local production. The findings of this research carry two broad policy implications. First, policymakers need to pay attention on the formulation of market price policy in a way to support local price. Second, the structure of the potato market (weak oligopoly) means that Burundi can change the trend of potato imports to its advantage if improvement of potato production could be done through good agricultural practice and investment in this sector.
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Citation
NDAYITWAYEKO Willy Marcel, KWIZERA Eloi Edouard, Testing for market power in the markets for potato in Burundi, pp. 149-176, Cahiers du CURDES n° 18, Juin 2020.