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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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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
Date of revision:
Handle: RePEc:oxf:wpaper:gprg-wps-068
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  1. 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.
  2. 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).
  3. Fafchamps, Marcel & Minten, Bart, 1998. "Relationships and traders in Madagascar," MTID discussion papers 24, International Food Policy Research Institute (IFPRI).
  4. Marcel Fafchamps & Måns Söderbom, 2004. "Wages and Labor Management in African Manufacturing," CSAE Working Paper Series 2004-02, Centre for the Study of African Economies, University of Oxford.
  5. Velenchik, A.D., 1995. "Government Intervention, Efficiency Wages, and the Employer-Size Wage Effects in Zimbabwe," Papers 95-09, Wellesley College - Department of Economics.
  6. 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.
  7. Fafchamps, Marcel & Vargas Hill, Ruth & Minten, Bart, 2007. "Quality control in non-staple food markets: Evidence from India," IFPRI discussion papers 717, International Food Policy Research Institute (IFPRI).
  8. Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
  9. Marcel Fafchamps & Eleni Gabre-Madhin, 2002. "Increasing Returns and Market Efficiency in Agricultural Trade," Economics Series Working Papers WPS/2002-18, University of Oxford, Department of Economics.
  10. 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.
  11. 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.
  12. 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.
  13. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
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