| Summary: | Spatial interactions are essential drivers of price transmission mechanisms and may significantly affect any food’s policy outcomes. However, spatial aspects seem to be generally overlooked when analysing price transmission. This paper attempts to fill this gap by highlighting the usefulness of spatial interaction and models for market integration analysis. A Spatial Dynamic Panel Data model is presented and applied to Niger’s millet market. Empirical results show that (1) the millet market is partly integrated, (2) locally traded commodities (millet and sorghum) are linked by a cross-commodity price transmission, (3) most imported cereals prices, which for Niger is maize and rice, did not affect the millet market, and (4) no cross-regions price transmission occurred for the millet market.
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