Abstract:
The prevalence of imperfect price transmission in the agricultural food markets continues to be an important
policy concern for most countries in Africa. Motivated by the coexistence of soaring food prices and high
domestic food production, this article investigates the performance of wholesale white maize markets in
Ethiopia during the post-agricultural market liberalization period. The presence of price manipulation in
the grain market structure has important welfare implications as it impedes the full transmission of price
reductions and increases among marketing intermediaries. Results indicate that regional maize markets
adjusted more quickly to price decreases than price increases to the central Addis Ababa wholesale maize
market prices, suggesting the absence of positive asymmetric price transmission. Our findings are in contrast
with existing studies conducted in southern, western and eastern Africa major food commodity markets.
