Francesco Caracciolo, Fabio Gaetano Santeramo
This study assesses the effects of CAP changes on the agricultural commodities' price transmission mechanism between selected developing countries and world markets. The analysis refers to four different countries: Bangladesh, Ethiopia, Ghana and Tanzania and three important staple food: maize, rice and wheat. Time series econometric models analyze price dynamics within different levels of EU subsidies. During the evaluation period (2000-2010) no empirical relationship has been detected among the EU subsidies for rice and world price of rice. On the contrary at least for maize sector and for Ethiopia and Tanzania, EU agricultural policies seemed not neutral.
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