Assessing the market power of millers and wholesalers in the Bangladesh rice sector

Purpose: Because of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using advanced econometric techniques. Design/ methodology/ approach: Using a Stochastic Frontier Estimation approach on...

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Main Authors: Rahman, M.C., Pede, Valerien O., Balie, J., Pabuayon, I.M., Yorobe, J.M., Mohanty, Samarendu
Format: Journal Article
Language:Inglés
Published: Emerald Publishing Limited 2021
Subjects:
Online Access:https://hdl.handle.net/10568/109176
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author Rahman, M.C.
Pede, Valerien O.
Balie, J.
Pabuayon, I.M.
Yorobe, J.M.
Mohanty, Samarendu
author_browse Balie, J.
Mohanty, Samarendu
Pabuayon, I.M.
Pede, Valerien O.
Rahman, M.C.
Yorobe, J.M.
author_facet Rahman, M.C.
Pede, Valerien O.
Balie, J.
Pabuayon, I.M.
Yorobe, J.M.
Mohanty, Samarendu
author_sort Rahman, M.C.
collection Repository of Agricultural Research Outputs (CGSpace)
description Purpose: Because of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using advanced econometric techniques. Design/ methodology/ approach: Using a Stochastic Frontier Estimation approach on cross-sectional data, the study examines the price spread along the rice value chain to determine whether millers and wholesalers exercise market power. Findings: Empirical results reveal that, on average, rice millers and wholesalers charge 33 and 29% above the marginal cost, respectively. This study confirms the non-competitive behavior of the rice market with wholesalers and millers wielding substantial market power. Research limitations/ implications: A limitation of the study is that it does not include the retailers who also play a major role in the Bangladesh rice value chain. This is left for future study. Originality/ value: This study combines primary and secondary data collected on the Bangladesh rice sector to examine the market power of two major players along the value chain, millers and wholesalers, using an advanced econometrics approach.
format Journal Article
id CGSpace109176
institution CGIAR Consortium
language Inglés
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher Emerald Publishing Limited
publisherStr Emerald Publishing Limited
record_format dspace
spelling CGSpace1091762025-12-08T10:29:22Z Assessing the market power of millers and wholesalers in the Bangladesh rice sector Rahman, M.C. Pede, Valerien O. Balie, J. Pabuayon, I.M. Yorobe, J.M. Mohanty, Samarendu rice value chains marketing margins stochastic models development agricultural biological sciences development economics econometrics Purpose: Because of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using advanced econometric techniques. Design/ methodology/ approach: Using a Stochastic Frontier Estimation approach on cross-sectional data, the study examines the price spread along the rice value chain to determine whether millers and wholesalers exercise market power. Findings: Empirical results reveal that, on average, rice millers and wholesalers charge 33 and 29% above the marginal cost, respectively. This study confirms the non-competitive behavior of the rice market with wholesalers and millers wielding substantial market power. Research limitations/ implications: A limitation of the study is that it does not include the retailers who also play a major role in the Bangladesh rice value chain. This is left for future study. Originality/ value: This study combines primary and secondary data collected on the Bangladesh rice sector to examine the market power of two major players along the value chain, millers and wholesalers, using an advanced econometrics approach. 2021-05-24 2020-09-02T18:03:29Z 2020-09-02T18:03:29Z Journal Article https://hdl.handle.net/10568/109176 en Limited Access Emerald Publishing Limited Rahman, M.C.; Pede, V.; Balie, J.; Pabuayon, I.M.; Yorobe, J.M.; Mohanty, S. (2020). Assessing the market power of millers and wholesalers in the Bangladesh rice sector. Journal of Agribusiness in Developing and Emerging Economies. ISSN 2044-0839. Published Online 21Jul2020
spellingShingle rice
value chains
marketing margins
stochastic models
development
agricultural
biological sciences
development economics
econometrics
Rahman, M.C.
Pede, Valerien O.
Balie, J.
Pabuayon, I.M.
Yorobe, J.M.
Mohanty, Samarendu
Assessing the market power of millers and wholesalers in the Bangladesh rice sector
title Assessing the market power of millers and wholesalers in the Bangladesh rice sector
title_full Assessing the market power of millers and wholesalers in the Bangladesh rice sector
title_fullStr Assessing the market power of millers and wholesalers in the Bangladesh rice sector
title_full_unstemmed Assessing the market power of millers and wholesalers in the Bangladesh rice sector
title_short Assessing the market power of millers and wholesalers in the Bangladesh rice sector
title_sort assessing the market power of millers and wholesalers in the bangladesh rice sector
topic rice
value chains
marketing margins
stochastic models
development
agricultural
biological sciences
development economics
econometrics
url https://hdl.handle.net/10568/109176
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