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Agricultural Markets in Benin and Malawi

  • Marcel Fafchamps
  • Eleni Gabre-Madhin

Based on original trader surveys, this paper examines how agricultural traders operate in Benin and Malawi. Results indicate that the largest transactions costs are search and transport. The use of modern technology is limited. Search methods rely principally on personal visits by the trader. Quality control requires the presence of the trader at the time of purchase. This raises costs as the trader has to travel a lot, and makes it difficult for trading enterprises to grow. Since enterprises remain very small, personal transport and search time represents a non-negligible share of marketing costs.

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File URL: http://www.gprg.org/pubs/workingpapers/pdfs/gprg-wps-068.pdf
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number GPRG-WPS-068.

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Date of creation: 01 Jan 2007
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Handle: RePEc:oxf:wpaper:gprg-wps-068
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Web page: http://www.economics.ox.ac.uk/
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  1. Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas. & Johnson, Michael., 2000. "The road half traveled," Food policy reports 10, International Food Policy Research Institute (IFPRI).
    • Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2000. "The road half traveled," Issue briefs 2, International Food Policy Research Institute (IFPRI).
  2. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
  3. Steven Tadelis, 1999. "What's in a Name? Reputation as a Tradeable Asset," American Economic Review, American Economic Association, vol. 89(3), pages 548-563, June.
  4. Badiane, Ousmane & Shively, Gerald E., 1998. "Spatial integration, transport costs, and the response of local prices to policy changes in Ghana," Journal of Development Economics, Elsevier, vol. 56(2), pages 411-431, August.
  5. Marcel Fafchamps & Måns Söderbom, 2004. "Wages and Labor Management in African Manufacturing," Economics Series Working Papers WPS/2004-02, University of Oxford, Department of Economics.
  6. Fafchamps, Marcel & Gabre-Madhin, Eleni Z. & Minten, Bart, 2003. "Increasing returns and market efficiency in agricultural trade," MTID discussion papers 60, International Food Policy Research Institute (IFPRI).
  7. Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
  8. Marcel Fafchamps & Bart Minten, 1999. "Relationships and traders in Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 1-35.
  9. Paul Collier & Marcel Fafchamps & Francis Teal & Stefan Dercon, 1999. "Contract flexibility and dispute resolution in African manufacturing," Economics Series Working Papers WPS/1999-20, University of Oxford, Department of Economics.
  10. Marcel Fafchamps & Ruth Vargas Hill & Bart Minten, 2008. "Quality control in nonstaple food markets: evidence from India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 251-266, 05.
  11. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
  12. Velenchik, A.D., 1995. "Government Intervention, Efficiency Wages, and the Employer-Size Wage Effects in Zimbabwe," Papers 95-09, Wellesley College - Department of Economics.
  13. Marcel Fafchampsm & Måns Söderbom, 2006. "Wages and Labor Management in African Manufacturing," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  14. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, June.
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