Price Transmission and Trader Entry in Domestic Commodity Markets

Marcel Fafchamps and Ruth Hill

No GPRG-WPS-038, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: Using detailed data from three simultaneous surveys of producers, traders, and exporters, this paper examines the transmission of international coffee prices through the domestic value chain in Uganda. We find that producer prices fluctuations are inconsistent with constant transactions costs. We investigate two possible explanations for this finding: marketing costs that increase with price, and trader entry. We test and reject the marketing costs explanation but we find some evidence of trader entry in response to a rise in export price. Our findings suggest that small itinerant traders initiate coffee trading in response to an export price increase, probably taking advantage of farmers` ignorance of price movements.

Date: 2005-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Price Transmission and Trader Entry in Domestic Commodity Markets (2008)
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:oxf:wpaper:gprg-wps-038

Access Statistics for this paper

More papers in Economics Series Working Papers from University of Oxford, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Anne Pouliquen ( this e-mail address is bad, please contact ).