Proximity and price co-movement in West African rice markets

Carolin Mengel and Stephan von Cramon-Taubadel
Authors registered in the RePEc Author Service: Carolin Kouyaté

No 170989, GlobalFood Discussion Papers from Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development

Abstract: This study explores the link between proximity and price cointegration between two markets, where proximity is captured with variables for geographical, political and cultural distance. Linear and threshold cointegration is tested for a set of 756 rice market pairs in 6 West African countries, with threshold specifications accounting for transaction costs. Whether proximity influences price transmission is determined in a second step with a multinomial logistic regression. The estimation produces robust and statistically significant evidence of a link with air-line and road distance, international borders, contiguity and a common language. We conclude that proximity matters for market integration processes in West African rice markets.

Keywords: Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 17
Date: 2014-05
New Economics Papers: this item is included in nep-afr and nep-agr
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Proximity and price co-movement in West African rice markets (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gagfdp:170989

DOI: 10.22004/ag.econ.170989

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