The Falling Price of Cement in Africa

Prices for several intermediate inputs, including cement, are higher in developing economies—particularly in Africa. Combining data from the International Comparison Program with a global directory of cement plants we estimate an industry equilibrium model to distinguish between drivers of internati...

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Main Authors:	Leone, Fabrizio, Macchiavello, Rocco, Reed, Tristan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	CEMENT DEMAND ELASTICITY INTERMEDIATE GOODS PRICE MARKET POWER OLIGOPOLY FIRM ENTRY
Online Access:	http://documents.worldbank.org/curated/en/727041624328488778/The-Falling-Price-of-Cement-in-Africa http://hdl.handle.net/10986/35826

id	okr-10986-35826
recordtype	oai_dc
spelling	okr-10986-358262022-06-01T18:42:29Z The Falling Price of Cement in Africa Leone, Fabrizio Macchiavello, Rocco Reed, Tristan CEMENT DEMAND ELASTICITY INTERMEDIATE GOODS PRICE MARKET POWER OLIGOPOLY FIRM ENTRY Prices for several intermediate inputs, including cement, are higher in developing economies—particularly in Africa. Combining data from the International Comparison Program with a global directory of cement plants we estimate an industry equilibrium model to distinguish between drivers of international price dispersion: demand, costs, conduct, and entry. Developing economies feature both higher marginal costs and higher markups. African markets are not characterized by higher barriers to entry and, if anything, feature relatively more competitive conduct. The small size of many national markets, however, limits entry and competition and explains most of the higher markups. Policy implications are discussed. 2021-06-24T15:08:46Z 2021-06-24T15:08:46Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/727041624328488778/The-Falling-Price-of-Cement-in-Africa http://hdl.handle.net/10986/35826 English Policy Research Working Paper;No. 9706 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CEMENT DEMAND ELASTICITY INTERMEDIATE GOODS PRICE MARKET POWER OLIGOPOLY FIRM ENTRY
spellingShingle	CEMENT DEMAND ELASTICITY INTERMEDIATE GOODS PRICE MARKET POWER OLIGOPOLY FIRM ENTRY Leone, Fabrizio Macchiavello, Rocco Reed, Tristan The Falling Price of Cement in Africa
geographic_facet	Africa Sub-Saharan Africa
relation	Policy Research Working Paper;No. 9706
description	Prices for several intermediate inputs, including cement, are higher in developing economies—particularly in Africa. Combining data from the International Comparison Program with a global directory of cement plants we estimate an industry equilibrium model to distinguish between drivers of international price dispersion: demand, costs, conduct, and entry. Developing economies feature both higher marginal costs and higher markups. African markets are not characterized by higher barriers to entry and, if anything, feature relatively more competitive conduct. The small size of many national markets, however, limits entry and competition and explains most of the higher markups. Policy implications are discussed.
format	Working Paper
author	Leone, Fabrizio Macchiavello, Rocco Reed, Tristan
author_facet	Leone, Fabrizio Macchiavello, Rocco Reed, Tristan
author_sort	Leone, Fabrizio
title	The Falling Price of Cement in Africa
title_short	The Falling Price of Cement in Africa
title_full	The Falling Price of Cement in Africa
title_fullStr	The Falling Price of Cement in Africa
title_full_unstemmed	The Falling Price of Cement in Africa
title_sort	falling price of cement in africa
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/727041624328488778/The-Falling-Price-of-Cement-in-Africa http://hdl.handle.net/10986/35826
_version_	1764483855709896704

The Falling Price of Cement in Africa

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