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THE IMPACT OF TRANSPORT- AND TRANSACTION-COST REDUCTIONS ON FOOD MARKETS IN DEVELOPING COUNTRIES: EVIDENCE FOR TEMPERED EXPECTATIONS FOR BURKINA FASO AgEcon
Ruijs, Arjan; Schweigman, Caspar; Lutz, Clemens.
Reductions in transport and transaction costs are expected to have a major effect on the functioning of food markets in developing countries. For many developing countries, this is a relevant issue as it may have important consequences for the food markets in urban and rural deficit areas. A partial equilibrium model is presented to analyze the effects of reduced costs on cereal price formation, inter-regional cereal trade, and farmers' and traders' storage strategies for the case of Burkina Faso. Our results show that the high expectations with regard to the direct effects of cost reductions on food prices and food availability require some nuance. First, the effects of even a huge reduction of transport costs only will be small. Secondly, an element...
Tipo: Conference Paper or Presentation Palavras-chave: Marketing.
Ano: 2003 URL: http://purl.umn.edu/25866
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Vertical Price Leadership on Local Maize Markets in Benin AgEcon
Kuiper, W. Erno; Lutz, Clemens; van Tilburg, Aad.
This paper considers vertical price relationships between wholesalers and retailers on five local maize markets in Benin. We show that if the common factor and the long-run disequilibrium error are not explicitly taken into account in testing the channel model, one can easily be wrong about how restrictions on the error-correction structure must be interpreted in terms of economic power in the channel. The empirical results show interesting differences between markets and reveal that retailers play a more prominent role in the price formation process than generally assumed in the literature. Retailers in the two major towns do not allow wholesalers to behave as vertical price leaders, but in the two larger rural centers, wholesalers involved in arbitrage...
Tipo: Conference Paper or Presentation Palavras-chave: Vertical price leadership; Marketing channels; Cointegration; Common Factor; Benin; Demand and Price Analysis; C32; D40; L10; O18; Q13.
Ano: 2002 URL: http://purl.umn.edu/24886
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