아프리카ㆍ중동

This study tries to analyze the spatial price transmission of coffee between Bench Maji Zone and Addis Ababa markets. Monthly prices data (September 2006 to August 2011) for producer and central market prices were collected from Central Statistical Agency of Ethiopia. The Engle and Granger procedure was employed to test for co-integration between prices. The ADF test for unit root was applied for individual price series. The results of stationarity tests indicate that, after the first difference, the null hypothesis was rejected at 1percent level of significance implying that the price series are integrated of order I(1). The results of Engle and Grange Co-integration show that there exists a long run relationship between local market (Bench Maji-Zone) and the central market (Addis Ababa) price. A one unit change in Addis Ababa price series brings about 56% changes in Bench Maji-Zone coffee price series. Moreover, Error Correction model revealed the existence of a weak short-run price transmission effect to local market. About 31% of the current change in the local market price is due to the current change in the central market price. However, the hypothesis of full market integration was rejected at 5% significance level. It takes two months’ time to complete full adjustment indicating that market equilibrium in the short-run was inefficient.