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Sissoko Investigates Government Price Support Impact on Refined Sugar Trade

Yaya Sissoko presented a research paper entitled “Trade Dwindling Effects of Market Price Support on Refined Sugar,” co-authored with Inoussa Boubacar, at the 78th Midwest Economics Association annual conference held in Chicago, March 21–23, 2014.

Agricultural commodity markets are characterized by intensive government regulatory controls. The policies are intended to protect domestic growers at the expense of consumers and other businesses.

Sissoko and Boubacar investigated the impact of government price support system on trade of refined sugar among the 22 top exporting countries. They employed the theoretically motivated gravity model in the context of spatial econometrics to account for the spatial interdependence of trade flows over the period spanning 1995–2007. Results indicate that the market price support has a trade-diminishing effect on refined sugar market and leads to higher prices.

Sissoko also chaired the session “International Trade I” in addition to discussing a paper in another session.

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