IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i6p1521-d213481.html
   My bibliography  Save this article

Quantity Measurement Cost and Reliability of Cereal Commodity Trade: Evidence from Ethiopia

Author

Listed:
  • Kidane Assefa Abebe

    (College of Economics and Management, Huazhong Agricultural University, No. 1 Shizishan Street, Hongshan District, Wuhan 430070, China)

  • Deyi Zhou

    (College of Economics and Management, Huazhong Agricultural University, No. 1 Shizishan Street, Hongshan District, Wuhan 430070, China)

  • Bekele Gebisa Etea

    (College of Economics and Management, Huazhong Agricultural University, No. 1 Shizishan Street, Hongshan District, Wuhan 430070, China)

  • Dessalegn Anshiso Sedebo

    (College of Economics and Management, Huazhong Agricultural University, No. 1 Shizishan Street, Hongshan District, Wuhan 430070, China)

  • Neway Habtemariam Muktar

    (School of Commerce, Addis Ababa University, Addis Ababa P.O. Box 3131, Ethiopia)

  • Dano Endalu Olana

    (College of Social Sciences and Humanities, Ambo University, Ambo P.O. Box 19, Ethiopia)

Abstract

Measurement reliability is an undervalued aspect of local agricultural marketplace organizations. There are also gaps in identifying the extent of cereal commodity trade measurement costs. Therefore, the aim of this paper is to estimate the magnitude of cereals trade quantity measurement cost caused by instrument error and unreliability in the context of the local marketplace in Ethiopia. In this regard, a survey was conducted in six different districts’ marketplaces ( n = 602) of Oromia regional state. In addition to administered structured questionnaires, site mass measurement calibration was employed. The survey data were analysed using an independent samples t -test, one sample t -test and analysis of variance. According to the findings, the actual value measurement means of the quantity of most local units of the farmers were greater than small traders. The independent t -test result indicated that the average values of the quantity of the majority of units of measurement between farmers and small traders were varied significantly. Estimated average measurement cost of the farmers and small trader which occurred due to measuring instruments’ error and unreliability were higher for a sack, bowl and glass units compared with other units of measurement. This study demonstrates that homogeneity in measurement, market regulatory policy and institutions that aid cereals trade have an indispensable role to reduce measurement costs thereby ensure equitable exchange.

Suggested Citation

  • Kidane Assefa Abebe & Deyi Zhou & Bekele Gebisa Etea & Dessalegn Anshiso Sedebo & Neway Habtemariam Muktar & Dano Endalu Olana, 2019. "Quantity Measurement Cost and Reliability of Cereal Commodity Trade: Evidence from Ethiopia," Sustainability, MDPI, vol. 11(6), pages 1-25, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1521-:d:213481
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/6/1521/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/6/1521/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bart Capéau & Stefan Dercon, 2006. "Prices, Unit Values and Local Measurement Units in Rural Surveys: an Econometric Approach with an Application to Poverty Measurement in Ethiopia," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 181-211, June.
    2. Douglass C. North, 1990. "A Transaction Cost Theory of Politics," Journal of Theoretical Politics, , vol. 2(4), pages 355-367, October.
    3. Daunton, M. J., 1995. "Progress and Poverty: An Economic and Social History of Britain 1700-1850," OUP Catalogue, Oxford University Press, number 9780198222811.
    4. North, Douglass C., 1989. "Institutions and economic growth: An historical introduction," World Development, Elsevier, vol. 17(9), pages 1319-1332, September.
    5. Yoram Barzel, 1997. "Measurement Cost and the Organization of Markets," Chapters, in: Svetozar Pejovich (ed.), The Economic Foundations of Property Rights, chapter 13, pages 171-192, Edward Elgar Publishing.
    6. Hoff, Karla & Stiglitz, Joseph E, 1990. "Imperfect Information and Rural Credit Markets--Puzzles and Policy Perspectives," The World Bank Economic Review, World Bank, vol. 4(3), pages 235-250, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kidane Assefa Abebe & Deyi Zhou & Bekele Gebisa Etea & Fekadu Megersa Senbeta & Dereje Kebebew Debeli & Rajani Osti, 2018. "Cereal Commodity Trading in Ethiopian Local Marketplace: Examining Farmers’ Quantity Measurement Behaviors," Agriculture, MDPI, vol. 8(12), pages 1-15, December.
    2. Mehrdad Vahabi, 2011. "Appropriation, violent enforcement, and transaction costs: a critical survey," Public Choice, Springer, vol. 147(1), pages 227-253, April.
    3. Lucas, David S. & Fuller, Caleb S. & Piano, Ennio E., 2018. "Rooking the state," International Review of Law and Economics, Elsevier, vol. 55(C), pages 12-20.
    4. Arun Natarajan Hariharan & Arindam Biswas, 2021. "A temporal review of global recognition of India's knowledge‐based industry through an institutional viewpoint," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 759-776, June.
    5. Jabbar, Mohammad A. & Sere, C, 2004. "Family Poultry Production: The Potential Contribution Of International Research," Research Reports 182874, International Livestock Research Institute.
    6. Gonzalo Caballero, 2004. "Instituciones e historia económica: enfoques y teorías institucionales," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 6(10), pages 135-157, January-J.
    7. Machiko Nissanke & Ernest Aryeetey, 2006. "Institutional Analysis of Financial Market Fragmentation in Sub-Saharan Africa: A Risk-Cost Configuration Approach," WIDER Working Paper Series RP2006-87, World Institute for Development Economic Research (UNU-WIDER).
    8. Hearn, Bruce, 2014. "Institutional impact on the expropriation of private benefits of control in North Africa," Research in International Business and Finance, Elsevier, vol. 30(C), pages 1-23.
    9. Gelo Dambala & Muchapondwa Edwin & Shimeles Abebe, 2017. "Working Paper 288 - Return to Investment in Agricultural Cooperatives in Ethiopia," Working Paper Series 2406, African Development Bank.
    10. Gelo, Dambala & Muchapondwa, Edwin & Shimeles, Abebe & Dikgang, Johane, 2019. "Welfare Effect and Elite Capture in Agricultural Cooperatives Intervention: Evidence from Ethiopian Villages," IZA Discussion Papers 12495, Institute of Labor Economics (IZA).
    11. Hearn, Bruce, 2013. "The institutional determinants of IPO firm prospectus length in a developing context: A research note," Research in International Business and Finance, Elsevier, vol. 27(1), pages 52-65.
    12. Costa-Font, Joan & Gil, Joan, 2008. "Generational effects and gender height dimorphism in contemporary Spain," Economics & Human Biology, Elsevier, vol. 6(1), pages 1-18, March.
    13. Jabbar, Mohammad A. & Benin, Samuel & Gabremedhin, Eleni & Paulos, Zeleka, 2008. "Market Institutions and Transaction Costs InfluencingTrader Performance in Live Animal Marketing in Rural Ethiopia," Research Reports 182149, International Livestock Research Institute.
    14. Moon, Wanki, 2017. "Developing an Institutional Political Economy Framework Integrating Firms, Markets, and States," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252532, Southern Agricultural Economics Association.
    15. Gonzalo Caballero & Christopher Kingston, 2005. "Cambio cultural, dinámica institucional y ciencia cognitiva: hacia una comprensión multidisciplinaria del desarrollo económico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 7(13), pages 327-335, July-Dece.
    16. Jabbar, Mohammad A. & Islam, S.M.F. & Delgado, C. & Ehui, Simeon K. & Akanda, M.A.I. & Khan, M.I. & Kamruzzaman, M., 2005. "Policy and scale factors influencing efficiency in dairy and poultry production in Bangladesh," Research Reports 182868, International Livestock Research Institute.
    17. Arun Natarajan Hariharan & Arindam Biswas, 2021. "Global Recognition of India’s Knowledge-Based Industry Evolution Through Empirical Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1399-1423, September.
    18. Hearn, Bruce, 2013. "The impact of board governance on director compensation in West African IPO firms," Research in International Business and Finance, Elsevier, vol. 28(C), pages 82-104.
    19. Eckardt, Martina, 2004. "Evolutionary approaches to legal change," Thuenen-Series of Applied Economic Theory 47, University of Rostock, Institute of Economics.
    20. Ennio E. Piano & Louis Rouanet, 2020. "Economic calculation and the organization of markets," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 33(3), pages 331-348, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1521-:d:213481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.