Spatial Integration at Multiple Scales: Rice Markets in Madagascar

41 Pages Posted: 12 Jul 2007

See all articles by Christine M. Moser

Christine M. Moser

Cornell University - Department of Economics and Management

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Bart Minten

Cornell University - Food and Nutrition Policy Program; Catholic University of Leuven (KUL) - Department of Agro-Engineering and Economics

Date Written: July 2006

Abstract

This paper uses an exceptionally rich data set to test the extent to which markets in Madagascar are integrated across space at different scales of analysis and to explain some of the factors that limit spatial arbitrage and price equalization within a single country. We use rice price data across four quarters of 2000-2001 along with data on transportation costs and infrastructure availability for nearly 1400 communes in Madagascar to examine the extent of market integration at three different spatial scales - sub-regional, regional, and national - and to determine whether non-integration is due to high transfer costs or lack of competition. The results indicate that markets are fairly well integrated at the sub-regional level and that factors such as high crime rates, remoteness, and lack of information are among the factors limiting competition.

Suggested Citation

Moser, Christine M. and Barrett, Christopher B. and Minten, Bart, Spatial Integration at Multiple Scales: Rice Markets in Madagascar (July 2006). Available at SSRN: https://ssrn.com/abstract=999388 or http://dx.doi.org/10.2139/ssrn.999388

Christine M. Moser (Contact Author)

Cornell University - Department of Economics and Management ( email )

206 Warren Hall Campus
Ithaca, NY 14853-7601
United States
607-272-0496 (Phone)

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Bart Minten

Cornell University - Food and Nutrition Policy Program ( email )

BP 6313
Antananarivo 101
Madagascar
033 11 38520 (Phone)
261 20 2222198 (Fax)

Catholic University of Leuven (KUL) - Department of Agro-Engineering and Economics ( email )

Kardinaal Mercierlaan 92
Heverlee, B-3001
Belgium

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