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

33 Pages Posted: 27 Apr 2011

See all articles by Rico Ihle

Rico Ihle

Independent

Stephan Cramon-Taubadel

University of Goettingen (Göttingen)

Sergiy Zorya

World Bank

Date Written: April 27, 2011

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.

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

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

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: https://ssrn.com/abstract=1824172 or http://dx.doi.org/10.2139/ssrn.1824172

Rico Ihle (Contact Author)

Independent ( email )

No Address Available

Stephan Cramon-Taubadel

University of Goettingen (Göttingen) ( 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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