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Spatial integration at multiple scales: rice markets in Madagascar

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  • Christine Moser
  • Christopher Barrett
  • Bart Minten

Abstract

The dramatic increase in the price of rice and other commodities over the past year has generated new interest in how these markets work and how they can be improved. This article uses an exceptionally rich data set to test the extent to which markets in Madagascar are integrated across space at different scales of analysis and to explain some of the factors that limit spatial arbitrage and price equalization within a single country. We use rice price data across four quarters of 2000-2001 along with data on transportation costs and infrastructure availability for nearly 1,400 communes in Madagascar to examine the extent of market integration at three different spatial scales-subregional, regional, and national-and to determine whether non-integration is due to high transfer costs or lack of competition. The results indicate that markets are fairly well integrated at the subregional level and that factors such as high crime rates, remoteness, and lack of information are among the factors limiting competition. Copyright (c) 2009 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 40 (2009)
Issue (Month): 3 (05)
Pages: 281-294

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Handle: RePEc:bla:agecon:v:40:y:2009:i:3:p:281-294

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Cited by:
  1. Chris Doucougliagos & Henry Haszler & Phillip Hone, 2007. "Spatial Pricing Efficiency in Fiji's Municipal Food Markets," Economics Series 2007_05, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  2. Kijima, Yoko & Otsuka, Keijiro & Futakuchi, Koichi, 2013. "The development of agricultural markets in sub-Saharan Africa: the case of rice in Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(4), October.
  3. Ole Boysen, 2009. "Border Price Shocks, Spatial Price Variation, and their Impacts on Poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp306, IIIS.
  4. Zant, Wouter, 2013. "How is the liberalization of food markets progressing ? market integration and transaction costs in subsistence economies," Policy Research Working Paper Series 6331, The World Bank.
  5. Sitko, Nicholas J. & Jayne, T.S., 2014. "Exploitative Briefcase Businessmen, Parasites, and Other Myths and Legends: Assembly Traders and the Performance of Maize Markets in Eastern and Southern Africa," World Development, Elsevier, vol. 54(C), pages 56-67.
  6. Quattri, Maria A., 2012. "On trade efficiency in the Ethiopian agricultural markets," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122512, European Association of Agricultural Economists.
  7. Minot, Nicholas, 2011. "Transmission of world food price changes to markets in Sub-Saharan Africa:," IFPRI discussion papers 1059, International Food Policy Research Institute (IFPRI).

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