Assessing the market power of millers and wholesalers in the Bangladesh rice sector

Mohammad Chhiddikur Rahman, Valerien Pede, Jean Balie, Isabelita M. Pabuayon, Jose M. Yorobe and Samarendu Mohanty

Journal of Agribusiness in Developing and Emerging Economies, 2020, vol. 11, issue 3, 280-295

Abstract: Purpose - Because of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using advanced econometric techniques. Design/methodology/approach - Using a Stochastic Frontier Estimation approach on cross-sectional data, the study examines the price spread along the rice value chain to determine whether millers and wholesalers exercise market power. Findings - Empirical results reveal that, on average, rice millers and wholesalers charge 33 and 29% above the marginal cost, respectively. This study confirms the non-competitive behavior of the rice market with wholesalers and millers wielding substantial market power Research limitations/implications - A limitation of the study is that it does not include the retailers who also play a major role in the Bangladesh rice value chain. This is left for future study. Originality/value - This study combines primary and secondary data collected on the Bangladesh rice sector to examine the market power of two major players along the value chain, millers and wholesalers, using an advanced econometrics approach.

Keywords: Rice; Price spread; Value chain; Stochastic frontier analysis; Mark-ups (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jadeep:jadee-04-2018-0053

DOI: 10.1108/JADEE-04-2018-0053

Access Statistics for this article

Journal of Agribusiness in Developing and Emerging Economies is currently edited by Anthony N. Rezitis

More articles in Journal of Agribusiness in Developing and Emerging Economies from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().