IDEAS home Printed from https://ideas.repec.org/p/ags/eaae98/10103.html
   My bibliography  Save this paper

Joint evolution of spatial integration and product segmentation on agricultural markets: the case of cereals in Mali

Author

Listed:
  • Aubert, Magali
  • Bignebat, Celine
  • Egg, Johny

Abstract

Within the context of liberalisation experienced by the Malian economy since the beginning of the 1990s, spatial integration of cereal markets has been considered as a major tool as to avoid localised shortages due to production shortfalls. However, market dynamic reveals since then new patterns: the diversification of urban consumer demand towards "modern cereals", in particular rice and maize, drives the segmentation of the cereal market. As consumer s are likely to substitute traditional cereals, like millet and sorghum, for other cereal types, new market segments emerge. We account for this evolution with a theoretical model à la Hotelling : the good is considered according to two characteristics, the spatial localisation (local market) and the cereal type. We show that, as far as market integration implies the reduction of transaction, it affects the strategic decisions of sellers. In fact, incentives to invest in product differentiation (and exploit new market segments) rises relatively to the incentives to take advantage of spatial price differentials, as they decrease. Last, we test this analytical proposition on price data collected by the agricultural market information system (SIM/PAM) from 1990 to 2004 on 6 local markets in central and northern Mali. We apply a vector error - correction model, and find evidence for the intensification of spatial co- integration relations during the period. Moreover, we relate this latter dynamics to the evolution towards the segmentation of cereal markets in Mali. Last, the leader markets of this progression are identified as being the central urban markets.

Suggested Citation

  • Aubert, Magali & Bignebat, Celine & Egg, Johny, 2006. "Joint evolution of spatial integration and product segmentation on agricultural markets: the case of cereals in Mali," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10103, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae98:10103
    DOI: 10.22004/ag.econ.10103
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/10103/files/sp06au01.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.10103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kelly, Valerie A. & Murekezi, Abdoul Karim & Me-Nsope, Nathalie Mongue & Perakis, Sonja Melissa & Mather, David, 2013. "Cereal Market Dynamics: The Malian Experience from the 1990s to Present," Food Security International Development Working Papers 146935, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    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:ags:eaae98:10103. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.