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Grain transport and rural credit in Mozambique: solving the space-time problem

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  • Arndt, Channing
  • Schiller, Rico
  • Tarp, Finn

Abstract

This paper shows how credit market failures can lead to large welfare losses in grain markets by inducing increased transport for seasonal storage in locations with low credit costs. The burden of these welfare losses falls primarily on rural households. These conclusions are obtained from a spatial/temporal model solved using a mixed complementarity formulation that easily handles interest rate differentials across space. Efforts to address credit market failures and to improve the efficiency of rural storage should be given priority as opposed to the creation of large, formal sector grain collection centers.
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  • Arndt, Channing & Schiller, Rico & Tarp, Finn, 2001. "Grain transport and rural credit in Mozambique: solving the space-time problem," Agricultural Economics, Blackwell, vol. 25(1), pages 59-70, June.
    • Handle: RePEc:eee:agecon:v:25:y:2001:i:1:p:59-70
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    5. Langyintuo, Augustine S. & Lowenberg-DeBoer, James & Arndt, Channing, 2003. "Potential Impacts Of The Proposed West African Monetary Zone On Cowpea Trade In West And Central Africa," 2003 Annual meeting, July 27-30, Montreal, Canada 22236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper Series 52794, World Bank.
    7. Arndt, Channing & Hussain, M. Azhar & Salvucci, Vincenzo & Østerdal, Lars Peter, 2016. "Effects of food price shocks on child malnutrition: The Mozambican experience 2008/2009," Economics & Human Biology, Elsevier, vol. 22(C), pages 1-13.
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