Abstract

http://ssrn.com/abstract=1824172
 


 



Measuring the Integration of Staple Food Markets in Sub-Saharan Africa: Heterogeneous Infrastructure and Cross Border Trade in the East African Community


Rico Ihle


University of Goettingen (Gottingen)

Stephan Cramon-Taubadel


University of Goettingen (Gottingen)

Sergiy Zorya


World Bank

April 27, 2011

CESifo Working Paper Series No. 3413

Abstract:     
This analysis employs cointegration methods and semiparametric regression in order to assess the integration of maize markets and the factors determining national and cross-national transmission of price signals in Sub-Saharan Africa. We use a rich dataset of 16 series of wholesale maize prices between 2000 and 2008 for Kenya, Tanzanian and Uganda. Distance is shown to have a significant nonlinear impact on the transmission of information - modelled using a semi-parametric partially linear model. Border effects are found to be heterogeneous. The empirical results provide strong evidence that the Tanzanian market is isolated from the rest of East Africa and internally fragmented.

Number of Pages in PDF File: 33

Keywords: border effect, spatial market integration, cointegration, semi-parametric regression, partially linear model, Eastern Africa, maize

JEL Classification: C320, Q110, Q130, Q170, Q180

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Date posted: April 27, 2011  

Suggested Citation

Ihle, Rico and Cramon-Taubadel, Stephan and Zorya, Sergiy, Measuring the Integration of Staple Food Markets in Sub-Saharan Africa: Heterogeneous Infrastructure and Cross Border Trade in the East African Community (April 27, 2011). CESifo Working Paper Series No. 3413. Available at SSRN: http://ssrn.com/abstract=1824172

Contact Information

Rico Ihle (Contact Author)
University of Goettingen (Gottingen) ( email )
Platz der Göttinger Sieben 5
Göttingen, 37073
Germany
Stephan Cramon-Taubadel
University of Goettingen (Gottingen) ( email )
Platz der Göttinger Sieben 5
Göttingen, 37073
Germany
Sergiy Zorya
World Bank ( email )
1818 H Street, NW
Washington, DC 20433
United States
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