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

We propose 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, we estimate transaction costs. Predicted transaction costs compare well with survey data of tr...

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Bibliographic Details
Main Author:	Zant, Wouter
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2014
Subjects:	competitive equilibrium market integration market liberalization market prices marketing merchandise price increases price volatility producer prices purchasing sale services markets spread storage capacity surplus trade opportunities turnover wholesalers wholesaling world market
Online Access:	http://hdl.handle.net/10986/19085

id	okr-10986-19085
recordtype	oai_dc
spelling	okr-10986-190852021-04-23T14:03:51Z How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies Zant, Wouter competitive equilibrium market integration market liberalization market prices marketing merchandise price increases price volatility producer prices purchasing sale services markets spread storage capacity surplus trade opportunities turnover wholesalers wholesaling world market We propose 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, we estimate 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 further support a negative trend in market integration with trade. 2014-07-30T20:59:56Z 2014-07-30T20:59:56Z 2013-01 Journal Article World Bank Economic Review 1564-698X 10.1093/wber/lhs017 http://hdl.handle.net/10986/19085 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Malawi
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	competitive equilibrium market integration market liberalization market prices marketing merchandise price increases price volatility producer prices purchasing sale services markets spread storage capacity surplus trade opportunities turnover wholesalers wholesaling world market
spellingShingle	competitive equilibrium market integration market liberalization market prices marketing merchandise price increases price volatility producer prices purchasing sale services markets spread storage capacity surplus trade opportunities turnover wholesalers wholesaling world market Zant, Wouter How Is the Liberalization of Food Markets Progressing? Market Integration and Transaction Costs in Subsistence Economies
geographic_facet	Malawi
description	We propose 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, we estimate 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 further support a negative trend in market integration with trade.
format	Journal Article
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
publisher	Oxford University Press on behalf of the World Bank
publishDate	2014
url	http://hdl.handle.net/10986/19085
_version_	1764443540771831808

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

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