Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa

Market integration is key to ensuring sufficient and stable food supplies. This paper assesses the impediments to market integration in Central and Eastern Africa for three food staples: maize, rice, and sorghum. The paper uses a large database on...

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Main Authors: Brenton, Paul, Portugal-Perez, Alberto, Regolo, Julie
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank Group, Washington, DC 2014
Subjects:
WFP
Online Access:http://documents.worldbank.org/curated/en/2014/08/20104921/food-prices-road-infrastructure-market-integration-central-eastern-africa
http://hdl.handle.net/10986/19340
id okr-10986-19340
recordtype oai_dc
spelling okr-10986-193402021-04-23T14:03:52Z Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa Brenton, Paul Portugal-Perez, Alberto Regolo, Julie ACCESS TO MARKETS ACTIVE MARKET AGRICULTURAL COMMODITIES AGRICULTURAL ECONOMICS ARBITRAGE AVERAGE PRICE BOTTLENECKS CASH TRANSFERS COMMERCE COMMODITY PRICE COMMODITY PRICES COMMON MARKET COMPETITIVE MARKETS COMPETITIVENESS CONSUMER PRICE CONSUMER PRICES COST OF TRANSPORTATION CROSSING CURRENCY DEVELOPING COUNTRIES DOMESTIC MARKET DOMESTIC MARKETS EXPORTER FAIR FOOD AID FOOD COLLECTION FOOD INSECURITY FOOD MARKETS FOOD POLICY FOOD PRICES FOOD PRODUCTS FOOD SECURITY FOOD SHORTAGES FOOD STAPLES FOOD SUPPLIES FOOD SUPPLY FOOD SURPLUS FOOD TRANSFERS FUEL FUEL CONSUMPTION GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT REVENUES HAZARD INPUT PRICES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE JOURNEY LACK OF COMPETITION LOCAL CURRENCY LOCAL FOOD PRODUCTION MAIZE MARKET COMPETITION MARKET EQUALS MARKET IMPEDIMENTS MARKET INTEGRATION MARKET POWER MARKET PRICE MARKET SEGMENTATION MARKET SIZE MARKETING MILLS OPPORTUNITY COSTS POLITICAL ECONOMY POTATOES PRICE ADJUSTMENTS PRICE CHANGES PRICE DIFFERENTIAL PRICE DIFFERENTIALS PRICE INDEXES PRICE LEVEL PRICE SETTING PRICE VOLATILITY PURCHASING REAL EXCHANGE RATE RESERVE RESERVES RETAIL RETAIL PRICE RETURN ROAD ROAD INFRASTRUCTURE ROAD LENGTHS ROAD NETWORK ROAD QUALITY ROAD_QUALITY ROADS RURAL MARKET SAFETY SAFETY NET SPEEDS STAPLE FOODS SUBSTITUTION SURPLUS SWEET POTATOES TELECOMMUNICATIONS TRADE LIBERALIZATION TRADE REGIMES TRADING TRAINS TRANSACTION TRANSACTION COST TRANSACTION COSTS TRANSACTIONS COSTS TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COSTS VEHICLES VOLATILITY WFP WHEAT WHOLESALE PRICES Market integration is key to ensuring sufficient and stable food supplies. This paper assesses the impediments to market integration in Central and Eastern Africa for three food staples: maize, rice, and sorghum. The paper uses a large database on monthly consumer prices for 150 towns in 13 African countries and detailed data on the length and quality of roads linking the towns. The analysis finds a substantial effect of distance and share of paved road on the level of market integration, as measured by relative prices. Furthermore, the paper evaluates the additional domestic and cross-border impediments to market integration in the region and represents them on a regional map. The analysis finds heterogeneous levels of domestic market integration across countries and significant "border effects" for the majority of contiguous countries in the sample, which reveal that markets are more integrated within than between countries. Countries that are members of the same regional trade agreement have substantially "thinner" borders with other members. Finally, the analysis shows that countries with less integrated domestic markets and "thicker" borders with their neighbors also have a higher prevalence of food insufficiency. These findings support policy efforts in tackling domestic and border impediments to transactions such as reforming customs, simplifying nontariff measures, addressing corruption, improving the quality of roads, and deepening regional trade agreements. 2014-08-15T14:17:04Z 2014-08-15T14:17:04Z 2014-08 http://documents.worldbank.org/curated/en/2014/08/20104921/food-prices-road-infrastructure-market-integration-central-eastern-africa http://hdl.handle.net/10986/19340 English en_US Policy Research Working Paper;No. 7003 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific South Asia Central Africa East Africa
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 ACCESS TO MARKETS
ACTIVE MARKET
AGRICULTURAL COMMODITIES
AGRICULTURAL ECONOMICS
ARBITRAGE
AVERAGE PRICE
BOTTLENECKS
CASH TRANSFERS
COMMERCE
COMMODITY PRICE
COMMODITY PRICES
COMMON MARKET
COMPETITIVE MARKETS
COMPETITIVENESS
CONSUMER PRICE
CONSUMER PRICES
COST OF TRANSPORTATION
CROSSING
CURRENCY
DEVELOPING COUNTRIES
DOMESTIC MARKET
DOMESTIC MARKETS
EXPORTER
FAIR
FOOD AID
FOOD COLLECTION
FOOD INSECURITY
FOOD MARKETS
FOOD POLICY
FOOD PRICES
FOOD PRODUCTS
FOOD SECURITY
FOOD SHORTAGES
FOOD STAPLES
FOOD SUPPLIES
FOOD SUPPLY
FOOD SURPLUS
FOOD TRANSFERS
FUEL
FUEL CONSUMPTION
GOVERNMENT INTERVENTION
GOVERNMENT INTERVENTIONS
GOVERNMENT REVENUES
HAZARD
INPUT PRICES
INTERNATIONAL BANK
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
JOURNEY
LACK OF COMPETITION
LOCAL CURRENCY
LOCAL FOOD PRODUCTION
MAIZE
MARKET COMPETITION
MARKET EQUALS
MARKET IMPEDIMENTS
MARKET INTEGRATION
MARKET POWER
MARKET PRICE
MARKET SEGMENTATION
MARKET SIZE
MARKETING
MILLS
OPPORTUNITY COSTS
POLITICAL ECONOMY
POTATOES
PRICE ADJUSTMENTS
PRICE CHANGES
PRICE DIFFERENTIAL
PRICE DIFFERENTIALS
PRICE INDEXES
PRICE LEVEL
PRICE SETTING
PRICE VOLATILITY
PURCHASING
REAL EXCHANGE RATE
RESERVE
RESERVES
RETAIL
RETAIL PRICE
RETURN
ROAD
ROAD INFRASTRUCTURE
ROAD LENGTHS
ROAD NETWORK
ROAD QUALITY
ROAD_QUALITY
ROADS
RURAL MARKET
SAFETY
SAFETY NET
SPEEDS
STAPLE FOODS
SUBSTITUTION
SURPLUS
SWEET POTATOES
TELECOMMUNICATIONS
TRADE LIBERALIZATION
TRADE REGIMES
TRADING
TRAINS
TRANSACTION
TRANSACTION COST
TRANSACTION COSTS
TRANSACTIONS COSTS
TRANSPORT
TRANSPORT COSTS
TRANSPORTATION
TRANSPORTATION COSTS
VEHICLES
VOLATILITY
WFP
WHEAT
WHOLESALE PRICES
spellingShingle ACCESS TO MARKETS
ACTIVE MARKET
AGRICULTURAL COMMODITIES
AGRICULTURAL ECONOMICS
ARBITRAGE
AVERAGE PRICE
BOTTLENECKS
CASH TRANSFERS
COMMERCE
COMMODITY PRICE
COMMODITY PRICES
COMMON MARKET
COMPETITIVE MARKETS
COMPETITIVENESS
CONSUMER PRICE
CONSUMER PRICES
COST OF TRANSPORTATION
CROSSING
CURRENCY
DEVELOPING COUNTRIES
DOMESTIC MARKET
DOMESTIC MARKETS
EXPORTER
FAIR
FOOD AID
FOOD COLLECTION
FOOD INSECURITY
FOOD MARKETS
FOOD POLICY
FOOD PRICES
FOOD PRODUCTS
FOOD SECURITY
FOOD SHORTAGES
FOOD STAPLES
FOOD SUPPLIES
FOOD SUPPLY
FOOD SURPLUS
FOOD TRANSFERS
FUEL
FUEL CONSUMPTION
GOVERNMENT INTERVENTION
GOVERNMENT INTERVENTIONS
GOVERNMENT REVENUES
HAZARD
INPUT PRICES
INTERNATIONAL BANK
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
JOURNEY
LACK OF COMPETITION
LOCAL CURRENCY
LOCAL FOOD PRODUCTION
MAIZE
MARKET COMPETITION
MARKET EQUALS
MARKET IMPEDIMENTS
MARKET INTEGRATION
MARKET POWER
MARKET PRICE
MARKET SEGMENTATION
MARKET SIZE
MARKETING
MILLS
OPPORTUNITY COSTS
POLITICAL ECONOMY
POTATOES
PRICE ADJUSTMENTS
PRICE CHANGES
PRICE DIFFERENTIAL
PRICE DIFFERENTIALS
PRICE INDEXES
PRICE LEVEL
PRICE SETTING
PRICE VOLATILITY
PURCHASING
REAL EXCHANGE RATE
RESERVE
RESERVES
RETAIL
RETAIL PRICE
RETURN
ROAD
ROAD INFRASTRUCTURE
ROAD LENGTHS
ROAD NETWORK
ROAD QUALITY
ROAD_QUALITY
ROADS
RURAL MARKET
SAFETY
SAFETY NET
SPEEDS
STAPLE FOODS
SUBSTITUTION
SURPLUS
SWEET POTATOES
TELECOMMUNICATIONS
TRADE LIBERALIZATION
TRADE REGIMES
TRADING
TRAINS
TRANSACTION
TRANSACTION COST
TRANSACTION COSTS
TRANSACTIONS COSTS
TRANSPORT
TRANSPORT COSTS
TRANSPORTATION
TRANSPORTATION COSTS
VEHICLES
VOLATILITY
WFP
WHEAT
WHOLESALE PRICES
Brenton, Paul
Portugal-Perez, Alberto
Regolo, Julie
Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
geographic_facet East Asia and Pacific
South Asia
Central Africa
East Africa
relation Policy Research Working Paper;No. 7003
description Market integration is key to ensuring sufficient and stable food supplies. This paper assesses the impediments to market integration in Central and Eastern Africa for three food staples: maize, rice, and sorghum. The paper uses a large database on monthly consumer prices for 150 towns in 13 African countries and detailed data on the length and quality of roads linking the towns. The analysis finds a substantial effect of distance and share of paved road on the level of market integration, as measured by relative prices. Furthermore, the paper evaluates the additional domestic and cross-border impediments to market integration in the region and represents them on a regional map. The analysis finds heterogeneous levels of domestic market integration across countries and significant "border effects" for the majority of contiguous countries in the sample, which reveal that markets are more integrated within than between countries. Countries that are members of the same regional trade agreement have substantially "thinner" borders with other members. Finally, the analysis shows that countries with less integrated domestic markets and "thicker" borders with their neighbors also have a higher prevalence of food insufficiency. These findings support policy efforts in tackling domestic and border impediments to transactions such as reforming customs, simplifying nontariff measures, addressing corruption, improving the quality of roads, and deepening regional trade agreements.
format Publications & Research :: Policy Research Working Paper
author Brenton, Paul
Portugal-Perez, Alberto
Regolo, Julie
author_facet Brenton, Paul
Portugal-Perez, Alberto
Regolo, Julie
author_sort Brenton, Paul
title Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
title_short Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
title_full Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
title_fullStr Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
title_full_unstemmed Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
title_sort food prices, road infrastructure, and market integration in central and eastern africa
publisher World Bank Group, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2014/08/20104921/food-prices-road-infrastructure-market-integration-central-eastern-africa
http://hdl.handle.net/10986/19340
_version_ 1764443770707771392