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Towards the integration of markets: Competition in road transportation of perishable goods between Malawi, South Africa, Zambia, and Zimbabwe

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  • Thando Vilakazi
  • Anthea Paelo

Abstract

Rapid urbanization and rising income levels in Southern Africa have increased the consumption of perishable and processed food products. This paper relies primarily on firm-level interview data to assess competition and bottlenecks in transporting time-sensitive perishable products across borders between Harare, Johannesburg, Lilongwe, and Lusaka. High transport prices in 2015—almost double the benchmark rates applied and rates for transportation of commodities—are partly explained by concentration in Malawi, Zambia, and Zimbabwe, and lack of return loads to Johannesburg.

Suggested Citation

  • Thando Vilakazi & Anthea Paelo, 2017. "Towards the integration of markets: Competition in road transportation of perishable goods between Malawi, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2017-49, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-49
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    References listed on IDEAS

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    1. Rashid, Shahidur & Minot, Nicholas, 2010. "Are Staple Food Markets in Africa Efficient? Spatial Price Analyses and Beyond," Food Security Collaborative Working Papers 58562, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    3. Thando Vilakazi & Anthea Paelo, 2017. "Towards the integration of markets: Competition in road transportation of perishable goods between Malawi, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
    4. Zamparini, Luca & Layaa, John & Dullaert, Wout, 2011. "Monetary values of freight transport quality attributes: A sample of Tanzanian firms," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1222-1234.
    5. Thando Vilakazi & Anthea Paelo, 2017. "Understanding intra-regional transport: Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series 046, World Institute for Development Economic Research (UNU-WIDER).
    6. Minten, Bart & Kyle, Steven, 1999. "The effect of distance and road quality on food collection, marketing margins, and traders' wages: evidence from the former Zaire," Journal of Development Economics, Elsevier, vol. 60(2), pages 467-495, December.
    7. Thando Vilakazi & Anthea Paelo, 2017. "Understanding intra-regional transport: Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2017-46, World Institute for Development Economic Research (UNU-WIDER).
    8. Supee Teravaninthorn & Gaël Raballand, 2009. "Transport Prices and Costs in Africa : A Review of the International Corridors," World Bank Publications - Books, The World Bank Group, number 6610, April.
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    Cited by:

    1. Grace Nsomba & Thando Vilakazi, 2021. "Barriers to entry and the role of African multinational corporations: Entrants in intermediate industrial products (inputs into construction)," WIDER Working Paper Series wp-2021-143, World Institute for Development Economic Research (UNU-WIDER).
    2. Roberts Simon, 2017. "Working Paper 255 - Competition and industrial policies relating to food production in southern Africa," Working Paper Series 2366, African Development Bank.

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