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Analysis of the effectiveness of modern information and communication technologies on maize marketing efficiency in Malawi markets

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  • Chowa, Sarah E. Tione

Abstract

In 2004, the government of Malawi introduced the Malawi Agriculture Commodity Exchange under the Initiative for Devel-opment and Equity in African Agriculture program, which promoted modern information and communication technologies (ICT) to improve access to agricultural market information for both suppliers and buyers of market produce. Using co-integration error correction models, this study assesses the effectiveness of modern ICT-based market interventions in improving maize market efficiency in Malawi. A Threshold Autoregressive Error Correction model was used to assess price transmission speed. Comparisons were made of the speed of price transmission in the periods before and after the intro-duction of ICT technologies by the Malawi Agriculture Commodity Exchange - Initiative for Development and Equity in African Agriculture in 2004. The spatial integration results show that maize markets in Malawi were better integrated fol-lowing the introduction of ICT-based market interventions.

Suggested Citation

  • Chowa, Sarah E. Tione, 2014. "Analysis of the effectiveness of modern information and communication technologies on maize marketing efficiency in Malawi markets," MaSSP working papers 10, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:masspp:10
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    Keywords

    MALAWI; SOUTHERN AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; maize; Markets; Commodity markets; Information and Communication Technologies (ICT); transaction costs; threshold autoregressive error correction model; price transmission; spatial integration; Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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