Mylène Kherallah

The new institutional economics : applications for agricultural policy research in developing countries

Abstract This paper summarizes the potential contributions of the new institutional economics to agricultural policy research, with particular emphasis to developing countries. The paper starts by providing an overview of the new institutional economics and its several branches of thought. It then describes the future challenges facing world agriculture and shows the potential applications of new institutional and transaction costs economics to agricultural policy analysis in this new world environment. The paper concludes by providing specific agricultural market research issues that can be analysed using the new institutional economics. As a dynamic school of thought, the new institutional economics offers exciting opportunities to answer some of the economic problems that neo-classical economics has found difficult to address.

Adjustment of wheat production to market reform in Egypt

Drawing on the results of a survey of 800 Egyptian wheat farmers, this chapter analyzes the patterns of wheat production and marketing (after the reforms of 1987), government procurement of domestic wheat, and the price responsiveness of wheat supply and input demand. The results indicate that most of the wheat produced is consumed in rural areas, which explains why only a small portion of national production is available for purchase by the government. Given observed price responsiveness, the study finds that achieving the goal of self-sufficiency through price policy would be costly and ill-advised.

The road half traveled: agricultural market reform in Sub-Saharan Africa

This article reviews the extensive evidence on agricultural market reforms in Sub-Saharan Africa and summarises the impact reforms have had on market performance, agricultural production, use of modern inputs, and poverty. It offers eight recommendations for completing the reform process and developing a new agenda for agricultural markets in Sub-Saharan Africa. The reform experience in Sub-Saharan Africa has varied widely across countries and crop subsectors. The available evidence shows clear progress in some areas and mixed results in others. Most reforms were only partially implemented and policy reversal was common. Once implemented, however, reforms have increased competition and reduced marketing margins, benefiting both producers and consumers. Reforms have also boosted export crop production. On the other hand, food crop production has stagnated and yields have not improved. Further expansion of private trade is constrained by lack of access to credit, uncertainty about the government’s commitment to reform, and high transaction costs.