[01] Mahmoud A. Amassaib, Department of Agricultural Economics and Rural Development, Faculty of Natural Resource and Environmental Studies, University of Kordofan, Elobeid, Sudan. [02] Salah M. Elawad, Department of Agricultural Economics, Faculty of Agriculture, University of Khartoum, Khartoum, Sudan. [03] Ahmed M. El Naim, Department of Crops Sciences, Faculty of Natural Resources and Environmental Studies, University of Kordofan, Elobeid, Sudan. [04] Elrashied E. Elkhiedi, Department of Agricultural Economics, Faculty of Agriculture, University of Khartoum, Khartoum, Sudan.

This paper was prepared to investigate the integration between the domestic and world prices of sorghum and measure the rate of transmission from world price to domestic price of sorghum. The study utilized secondary data covering the period 1970-2007.The data analyzed using dynamic linear regression model. The most important results revealed from the study were that the sorghum domestic price was inelastic in respond to both sorghum production cost and adjusted world prices in short run (0.2668 and 0.39543) and in long run (0.3982 and 0.5901). The effects of adjusted world price implied that devaluation and decrease of tariff rate would lead to increase of sorghum domestic price.

World Price, Export Pan, Intervention, Sudan

[01] Headey, D. 2011. Was the global food crisis really a crisis? Simulations versus self-reporting”, IFPRI Working Paper No 1087. [02] Skoufias, E., Tiwari E and Zaman, H. 2011. Can we rely on cash transfers to protect dietary diversity during food crises? Estimates from Indonesia. World Bank Policy Research Working Paper No. 5548, World Bank, Washington DC. [03] Wood, B., Nelson, C. and Nogueira, L. 2010. Measuring the Welfare Impact of Food Price Increases on Mexican Households (8/12/10 version for revision). [04] Aksoy, A. and Isik-Dikmelik, A. 2008. Are low food prices pro-poor? Technical report, World Bank Development Research Group, Working Paper 4642. [05] Ivanic, M. and Martin, W. 2008. Implications of higher global food prices for poverty in lowincome countries. Agricultural Economics, 39 :405–416. [06] DeHoyos, R. and Medvedev, D. 2009. Poverty effects of higher food prices: A global perspective. Technical report, World Bank policy research working paper. [07] Culff, M. 2003. A Review of spatial price transmission in major world commodity models. Paper provide to Aglink Users Group, OECD. [08] Meyer, F. H. 2007. Model closure and price formation under switching grain market regimes in South Africa. A Thesis submitted to Ph.D. Department of Agricultural Economics, Extension, and Rural Development. Faculty of Natural and agricultural Science. University of Pretoria. [09] Elawad, S. M. 2001. Supply response of Sudan's cotton industry: Implications of government intervention. Unpublished Ph.D. thesis, University of Purtra, Malaysia. [10] Mose, Lawrence O. 2007. Who gains, who loses? The impact of market liberalisation on rural households in Northwestern Kenya. PhD Thesis, Wageningen University. ISBN 90-8504-634-3. [11] Keele, L. and De Boef, S. 2004. Not just for co-integration: Error correction models with stationary data.

[12] Nithin, K. and Roy, R. 2014. Finance commission of India’s assessments: A Political economy contention between expectations and outcomes. National Institute of Public Finance and Policy New Delhi. Working Paper No. 2014-141.

[13] Valdes, A. 1993. The Macroeconomic environment necessary for agricultural trade and policy reform. Food Policy: 272-282.