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Does mobile phone technology reduce agricultural price distortions? Evidence from cocoa and coffee industries
Department of Agricultural Economics and Rural Development, University of Rwanda, Kigali, Rwanda.
Department of Economics, Swedish University of Agricultural Sciences (SLU), Box 7013, 750 07, Uppsala, Sweden.ORCID iD: 0000-0002-3581-4704
2018 (English)In: Agricultural and Food Economics, E-ISSN 2193-7532, Vol. 6, no 1, article id 20Article in journal (Refereed) Published
Abstract [en]

Agricultural price distortion which is the discrepancy between world market price of agricultural produce and price received by farmers as a result of market interventions by governments, either through subsidies or taxes or even trade protection systems, has received rare attention in the cocoa and coffee sub-sectors. This study examines the contribution of mobile phone technology in reducing price distortions in cocoa and coffee production. In addition, we tested stylized facts such as the development paradox, resource abundance, and group-size effect in agricultural price distortions literature. The findings suggest that access to mobile phones reduces the extent of price distortions. The effect of mobile phone usage on the extent of price distortion, the nominal rate of assistance, and relative price margin is conditional on internet connectivity. Whereas our results support the development paradox and group-size effect hypotheses, the resource abundance hypothesis is not supported. Based on our results, policies that seek to reduce the cost of telecommunication, increase competition in the telecommunication industry, and increase economic growth would go a long way to reduce price distortion in the cocoa and coffee industries.

Place, publisher, year, edition, pages
Springer, 2018. Vol. 6, no 1, article id 20
National Category
Economics Telecommunications
Identifiers
URN: urn:nbn:se:ltu:diva-88376DOI: 10.1186/s40100-018-0115-3Scopus ID: 2-s2.0-85056081249OAI: oai:DiVA.org:ltu-88376DiVA, id: diva2:1619630
Available from: 2021-12-13 Created: 2021-12-13 Last updated: 2022-04-04Bibliographically approved

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Amuakwa-Mensah, Franklin

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