How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies

The paper proposes a modification of Baulch's parity bounds model to measure the market integration of food markets in developing countries. Instead of extrapolating a single observation of transaction costs, it estimates transaction costs. Pr...

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Main Author:	Zant, Wouter
Format:	Policy Research Working Paper
Language:	English en_US
Published:	2013
Subjects:	ACCOUNTING ADVERSE IMPACTS AGRICULTURAL COMMODITY AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURE ARBITRAGE BAGGING BANK CREDIT CAPACITY BUILDING COMPARATIVE ADVANTAGE COMPETITIVE EQUILIBRIUM COMPETITIVE MARKET COMPETITIVE MARKETS CONGESTION CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS COSTS OF TRANSPORT CREDIT CONSTRAINTS DEMAND FOR TRANSPORT DEMAND FOR TRANSPORT SERVICES DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT PROJECTS DIESEL DUMMY VARIABLES ECONOMETRICS ECONOMIES OF SCALE EFFICIENT MARKETS ELASTICITY EQUATIONS EXCESS DEMAND EXCESS SUPPLY EXPORTER EXPORTS FAMINE FOOD AID FOOD MARKETS FOOD POLICY FOOD PRICES FOOD REQUIREMENTS FOOD SECURITY FOOD SHORTAGE FOOD SHORTAGES FREIGHT FUEL FUEL PRICE FUEL PRICES FUTURE RESEARCH GDP GOVERNMENT INVOLVEMENT HAZARDS HIGH TRANSPORT HOMOGENEOUS GOOD IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDEX NUMBERS INSPECTION INTERNATIONAL BANK INTERNATIONAL TRANSPORT INTERPOLATION INVESTING LENDING INTEREST RATES LEVIES LIQUIDITY LIQUIDITY CONSTRAINTS
Online Access:	http://documents.worldbank.org/curated/en/2013/01/17195348/liberalization-food-markets-progressing-market-integration-transaction-costs-subsistence-economies http://hdl.handle.net/10986/12154

id	okr-10986-12154
recordtype	oai_dc
spelling	okr-10986-121542021-04-23T14:03:06Z How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies Zant, Wouter ACCOUNTING ADVERSE IMPACTS AGRICULTURAL COMMODITY AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURE ARBITRAGE BAGGING BANK CREDIT CAPACITY BUILDING COMPARATIVE ADVANTAGE COMPETITIVE EQUILIBRIUM COMPETITIVE MARKET COMPETITIVE MARKETS CONGESTION CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS COSTS OF TRANSPORT CREDIT CONSTRAINTS DEMAND FOR TRANSPORT DEMAND FOR TRANSPORT SERVICES DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT PROJECTS DIESEL DUMMY VARIABLES ECONOMETRICS ECONOMIES OF SCALE EFFICIENT MARKETS ELASTICITY EQUATIONS EXCESS DEMAND EXCESS SUPPLY EXPORTER EXPORTS FAMINE FOOD AID FOOD MARKETS FOOD POLICY FOOD PRICES FOOD REQUIREMENTS FOOD SECURITY FOOD SHORTAGE FOOD SHORTAGES FREIGHT FUEL FUEL PRICE FUEL PRICES FUTURE RESEARCH GDP GOVERNMENT INVOLVEMENT HAZARDS HIGH TRANSPORT HOMOGENEOUS GOOD IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDEX NUMBERS INSPECTION INTERNATIONAL BANK INTERNATIONAL TRANSPORT INTERPOLATION INVESTING LENDING INTEREST RATES LEVIES LIQUIDITY LIQUIDITY CONSTRAINTS The paper proposes a modification of Baulch's parity bounds model to measure the market integration of food markets in developing countries. Instead of extrapolating a single observation of transaction costs, it estimates transaction costs. Predicted transaction costs compare well with survey data of traders. Probabilities of market regimes, computed on the basis of predicted transaction costs, fluctuate significantly and do not support fixed regime probabilities over time. The probability of market integration with trade decreases consistently during food shortages, increasing either the probability of no trade or loss-making trade or the probability of profitable but unexploited trade opportunities. The data support a negative trend in market integration with trade. 2013-01-25T21:47:27Z 2013-01-25T21:47:27Z 2013-01 http://documents.worldbank.org/curated/en/2013/01/17195348/liberalization-food-markets-progressing-market-integration-transaction-costs-subsistence-economies http://hdl.handle.net/10986/12154 English en_US Policy Research Working Paper; No. 6331 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ADVERSE IMPACTS AGRICULTURAL COMMODITY AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURE ARBITRAGE BAGGING BANK CREDIT CAPACITY BUILDING COMPARATIVE ADVANTAGE COMPETITIVE EQUILIBRIUM COMPETITIVE MARKET COMPETITIVE MARKETS CONGESTION CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS COSTS OF TRANSPORT CREDIT CONSTRAINTS DEMAND FOR TRANSPORT DEMAND FOR TRANSPORT SERVICES DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT PROJECTS DIESEL DUMMY VARIABLES ECONOMETRICS ECONOMIES OF SCALE EFFICIENT MARKETS ELASTICITY EQUATIONS EXCESS DEMAND EXCESS SUPPLY EXPORTER EXPORTS FAMINE FOOD AID FOOD MARKETS FOOD POLICY FOOD PRICES FOOD REQUIREMENTS FOOD SECURITY FOOD SHORTAGE FOOD SHORTAGES FREIGHT FUEL FUEL PRICE FUEL PRICES FUTURE RESEARCH GDP GOVERNMENT INVOLVEMENT HAZARDS HIGH TRANSPORT HOMOGENEOUS GOOD IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDEX NUMBERS INSPECTION INTERNATIONAL BANK INTERNATIONAL TRANSPORT INTERPOLATION INVESTING LENDING INTEREST RATES LEVIES LIQUIDITY LIQUIDITY CONSTRAINTS
spellingShingle	ACCOUNTING ADVERSE IMPACTS AGRICULTURAL COMMODITY AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURE ARBITRAGE BAGGING BANK CREDIT CAPACITY BUILDING COMPARATIVE ADVANTAGE COMPETITIVE EQUILIBRIUM COMPETITIVE MARKET COMPETITIVE MARKETS CONGESTION CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS COSTS OF TRANSPORT CREDIT CONSTRAINTS DEMAND FOR TRANSPORT DEMAND FOR TRANSPORT SERVICES DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT PROJECTS DIESEL DUMMY VARIABLES ECONOMETRICS ECONOMIES OF SCALE EFFICIENT MARKETS ELASTICITY EQUATIONS EXCESS DEMAND EXCESS SUPPLY EXPORTER EXPORTS FAMINE FOOD AID FOOD MARKETS FOOD POLICY FOOD PRICES FOOD REQUIREMENTS FOOD SECURITY FOOD SHORTAGE FOOD SHORTAGES FREIGHT FUEL FUEL PRICE FUEL PRICES FUTURE RESEARCH GDP GOVERNMENT INVOLVEMENT HAZARDS HIGH TRANSPORT HOMOGENEOUS GOOD IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDEX NUMBERS INSPECTION INTERNATIONAL BANK INTERNATIONAL TRANSPORT INTERPOLATION INVESTING LENDING INTEREST RATES LEVIES LIQUIDITY LIQUIDITY CONSTRAINTS Zant, Wouter How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
relation	Policy Research Working Paper; No. 6331
description	The paper proposes a modification of Baulch's parity bounds model to measure the market integration of food markets in developing countries. Instead of extrapolating a single observation of transaction costs, it estimates transaction costs. Predicted transaction costs compare well with survey data of traders. Probabilities of market regimes, computed on the basis of predicted transaction costs, fluctuate significantly and do not support fixed regime probabilities over time. The probability of market integration with trade decreases consistently during food shortages, increasing either the probability of no trade or loss-making trade or the probability of profitable but unexploited trade opportunities. The data support a negative trend in market integration with trade.
format	Publications & Research :: Policy Research Working Paper
author	Zant, Wouter
author_facet	Zant, Wouter
author_sort	Zant, Wouter
title	How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
title_short	How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
title_full	How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
title_fullStr	How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
title_full_unstemmed	How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
title_sort	how is the liberalization of food markets progressing? market integration and transaction costs in subsistence economies
publishDate	2013
url	http://documents.worldbank.org/curated/en/2013/01/17195348/liberalization-food-markets-progressing-market-integration-transaction-costs-subsistence-economies http://hdl.handle.net/10986/12154
_version_	1764422237935370240

How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies

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