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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. © 2001 Elsevier Science B.V. All rights reserved.
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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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    Cited by:

    1. Andam, Kwaw S. & Johnson, Michael E. & Ragasa, Catherine & Kufoalor, Doreen S. & das Gupta, Sunipa, 2017. "A chicken and maize situation: The poultry feed sector in Ghana," IFPRI discussion papers 1601, International Food Policy Research Institute (IFPRI).
    2. Chen, Jing & Rozelle, Scott, 2003. "Market Emergence And The Rise And Fall Of Backyard Hog Production In China," 2003 Annual meeting, July 27-30, Montreal, Canada 21969, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Ruijs, Arjan & Schweigman, Caspar & Lutz, Clemens, 2003. "The Impact Of Transport- And Transaction-Cost Reductions On Food Markets In Developing Countries: Evidence For Tempered Expectations For Burkina Faso," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25866, International Association of Agricultural Economists.
    4. 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).
    5. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper 52794, World Bank.
    6. Ruijs, Arjan & Schweigman, Caspar & Lutz, Clemens, 2004. "The impact of transport- and transaction-cost reductions on food markets in developing countries: evidence for tempered expectations for Burkina Faso," Agricultural Economics, Blackwell, vol. 31(2-3), pages 219-228, December.

    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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