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Proximity and price co-movement in West African rice markets

Carolin Kouyaté, Stephan von Cramon-Taubadel and Ismael Fofana

African Journal of Agricultural and Resource Economics, 2016, vol. 11, issue 3

Abstract: We have explored the link between proximity and price transmission in rice markets, where proximity is captured using variables for geographic, political and cultural distance. Linear and threshold cointegration was tested for 351 rice market pairs in six West African countries, with threshold specifications accounting for transaction costs. The influence of proximity on price transmission is estimated in a subsequent multinomial logistic regression. The results provide evidence of a robust and statistically significant link between the strength of price transmission and measures of proximity such as distance, international borders, contiguity and a common language. We conclude that proximity matters for market integration processes in West African rice markets.

Keywords: West Africa; cointegration; rice; transaction costs; regional integration; Crop Production/Industries; Demand and Price Analysis; Production Economics (search for similar items in EconPapers)
Date: 2016
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Working Paper: Proximity and price co-movement in West African rice markets (2014) Downloads
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