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Impact of Market Information System (E-Soko) on Beans Markets Integration: Case of Rwanda


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  • Bizimana, Jean-Claude
  • Bessler, David A.
  • Angerer, Jay P.


The goal of this study was to analyze the impact of a newly introduced market information system “E-Soko”, on beans markets integration by comparing the period before and after the system was implemented in Rwanda. Beans, both bush and climbing, are the most important traded crop in rural areas of Rwanda, and third most important in urban areas in terms of value. Bi-weekly prices on beans were analyzed for the two time periods: one before the introduction of the market information system “E-Soko” (1999 to 2003) and another one after “E-Soko” was introduced (2007-2012) on eight markets across Rwanda for each period. Vector autregression methods were used to analyze the data and assess the level of market integration in both periods. Stationarity tests show that the price series in the period after the introduction of E-Soko (2007-2012) are all (except one) stationary, which raises the question of the market efficiency. Prices in the period before E-Soko (1999-2003) indicate a good level of integration with Musanze market leading the group. No clear conclusions were drawn from this study regarding the impact of the E-Soko market information system. More studies on beans marketing channels, mechanism of price formation (market power?) and price data collection and reporting processes are needed to elucidate some of the unclear behavior of beans prices.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida with number 142734.

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Date of creation: 2013
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Handle: RePEc:ags:saea13:142734

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Related research

Keywords: Market information; Vector autoregression; Market integration; Non-stationary; Agricultural and Food Policy; Food Security and Poverty; Research and Development/Tech Change/Emerging Technologies;

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  1. Kizito, Andrew M., 2009. "Estimating the Benefits from Improved Market Information," Graduate Research Masters Degree Plan B Papers 48844, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Haigh, Michael S. & Bessler, David A., 2002. "Causality And Price Discovery: An Application Of Directed Acyclic Graphs," Working Papers 28588, University of Maryland, Department of Agricultural and Resource Economics.
  3. David A. Bessler & Alpha Kergna, 2002. "Price Discovery: The Case of Millet in Bamako, Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(4), pages 472-502, December.
  4. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  5. Johansen, Soren, 1992. "Determination of Cointegration Rank in the Presence of a Linear Trend," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 383-97, August.
  6. Juselius, Katarina, 2006. "The Cointegrated VAR Model: Methodology and Applications," OUP Catalogue, Oxford University Press, number 9780199285679, October.
  7. Rashid, Shahidur & Minot, Nicholas, 2010. "Are Staple Food Markets in Africa Efficient? Spatial Price Analyses and Beyond," Food Security Collaborative Working Papers 58562, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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