L'intégration spatiale de marchés et échange discontinu: une analyse des marchés spot urbains pour la tomate au Zimbabwe

Edward Mabaya

Économie rurale, 2004, vol. 283-284

Abstract: This paper advances a diagnostic understanding of smallholder agricultural markets in Zimbabwe by evaluating market integration between urban spot markets for tomatoes. Utilizing prices series and intermarket transfer cost data, the analysis employs Baulch's Parity Bounds Model which allows for discontinuous trade and thus kinked price relationships between markets. The results show for most market pairs high probabilities of being inside parity bounds between most markets suggesting prohibitive transportation costs (intermarket transfer costs exceed price differentials). Only for three out of the fifteen market pairs are there significant probabilities of violating spatial arbitrage conditions indicating inefficiencies. To improve welfare through agricultural markets, public policy should focus on ways to reduce intermarket transfer costs for arbitragers. Possible ways to lower transportation costs include leasing of underutilize government tracks and back-hauling by private companies.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ersfer:355264

DOI: 10.22004/ag.econ.355264

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