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Transmission Des Prix Et Asymétrie Sur Les Marchés De Produits Vivriers Au Bénin

Author

Listed:
  • Rose FIAMOHE

    () (Africa Rice Center (AfricaRice), 01 BP 2031 Cotonou, Benin)

  • Bruno HENRY de FRAHAN

    () (Earth and Life Institute, Université catholique de Louvain, Place de la Croix du Sud 2, 1348 Louvain-la-Neuve, Belgique)

Abstract

This paper examines price transmission between the retail market of Cotonou and rural markets of several food products in Benin. The use of Enders and Granger asymmetric model on the monthly price series from 1990 to 2005 shows that most rural food markets are symmetrically integrated to the retail market. The speed of price adjustments on the rural markets is however greater than the speed of price adjustments on the retail market of Cotonou. Merchant associations that are more active in the rural markets could explain such results. By consolidating their supply and chartering together their shipments, merchant associations facilitate trade between markets despite high transaction costs resulting from distances between markets and low quality of the road network. Through agreements on buying and selling prices of food products, these merchant associations exercise some market power on these markets.

Suggested Citation

  • Rose FIAMOHE & Bruno HENRY de FRAHAN, 2012. "Transmission Des Prix Et Asymétrie Sur Les Marchés De Produits Vivriers Au Bénin," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 36, pages 205-228.
  • Handle: RePEc:tou:journl:v:36:y:2012:p:205-228
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    File URL: http://region-developpement.univ-tln.fr/fr/pdf/R36/11-Fiamohe_Henry.pdf
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    References listed on IDEAS

    as
    1. Hansen, Bruce E. & Seo, Byeongseon, 2002. "Testing for two-regime threshold cointegration in vector error-correction models," Journal of Econometrics, Elsevier, pages 293-318.
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    3. Hansen, Bruce E, 1996. "Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis," Econometrica, Econometric Society, vol. 64(2), pages 413-430, March.
    4. Barry K. Goodwin & Nicholas E. Piggott, 2001. "Spatial Market Integration in the Presence of Threshold Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 302-317.
    5. Enders, Walter & Siklos, Pierre L, 2001. "Cointegration and Threshold Adjustment," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(2), pages 166-176, April.
    6. Alderman, Harold, 1993. "Intercommodity Price Transmittal: Analysis of Food Markets in Ghana," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(1), pages 43-64, February.
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    11. Enders, Walter & Granger, Clive W J, 1998. "Unit-Root Tests and Asymmetric Adjustment with an Example Using the Term Structure of Interest Rates," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(3), pages 304-311, July.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    PRICE TRANSMISSION; ASYMMETRY; FOOD MARKETS; MERCHANT ASSOCIATION; COTONOU; BENIN;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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