Increasing returns and market efficiency in agricultural trade
Using detailed trader surveys in Benin, Madagascar, and Malawi, this paper investigates the presence of increasing returns in agricultural trade. After analyzing margins, costs, and value added, we find little evidence of returns to scale. Motorized transport is found more cost effective for large l...
| Autores principales: | , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2003
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/156519 |
| _version_ | 1855527691642470400 |
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| author | Fafchamps, Marcel Gabre-Madhin, Eleni Zaude Minten, Bart |
| author_browse | Fafchamps, Marcel Gabre-Madhin, Eleni Zaude Minten, Bart |
| author_facet | Fafchamps, Marcel Gabre-Madhin, Eleni Zaude Minten, Bart |
| author_sort | Fafchamps, Marcel |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Using detailed trader surveys in Benin, Madagascar, and Malawi, this paper investigates the presence of increasing returns in agricultural trade. After analyzing margins, costs, and value added, we find little evidence of returns to scale. Motorized transport is found more cost effective for large loads on longer distances. But transporters pool quantities from multiple traders. Margin rates show little relationship with transaction size. Personal travel costs are a source of increasing returns, but the effect is small. Consequently, total marketing costs are nearly proportional to transaction size. Working and network capital are key determinants of value added. Constant returns to scale in all accumulable factors -- working capital, labor, and network capital -- cannot be projected. This implies that policies to restrict entry into agricultural trade are neither necessary nor useful. Governments should focus instead on technological and institutional innovations to upgrade agricultural markets." -- Authors' Abstract |
| format | Artículo preliminar |
| id | CGSpace156519 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2003 |
| publishDateRange | 2003 |
| publishDateSort | 2003 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1565192025-11-06T06:28:13Z Increasing returns and market efficiency in agricultural trade Fafchamps, Marcel Gabre-Madhin, Eleni Zaude Minten, Bart agricultural trade policies surveys return on investment trade profitability markets agricultural economics working capital labour efficiency Using detailed trader surveys in Benin, Madagascar, and Malawi, this paper investigates the presence of increasing returns in agricultural trade. After analyzing margins, costs, and value added, we find little evidence of returns to scale. Motorized transport is found more cost effective for large loads on longer distances. But transporters pool quantities from multiple traders. Margin rates show little relationship with transaction size. Personal travel costs are a source of increasing returns, but the effect is small. Consequently, total marketing costs are nearly proportional to transaction size. Working and network capital are key determinants of value added. Constant returns to scale in all accumulable factors -- working capital, labor, and network capital -- cannot be projected. This implies that policies to restrict entry into agricultural trade are neither necessary nor useful. Governments should focus instead on technological and institutional innovations to upgrade agricultural markets." -- Authors' Abstract 2003 2024-10-24T12:44:28Z 2024-10-24T12:44:28Z Working Paper https://hdl.handle.net/10568/156519 en Open Access application/pdf International Food Policy Research Institute Fafchamps, Marcel; Gabre-Madhin, Eleni Zaude; Minten, Bart. 2003. Increasing returns and market efficiency in agricultural trade. MTID Discussion Paper 60. https://hdl.handle.net/10568/156519 |
| spellingShingle | agricultural trade policies surveys return on investment trade profitability markets agricultural economics working capital labour efficiency Fafchamps, Marcel Gabre-Madhin, Eleni Zaude Minten, Bart Increasing returns and market efficiency in agricultural trade |
| title | Increasing returns and market efficiency in agricultural trade |
| title_full | Increasing returns and market efficiency in agricultural trade |
| title_fullStr | Increasing returns and market efficiency in agricultural trade |
| title_full_unstemmed | Increasing returns and market efficiency in agricultural trade |
| title_short | Increasing returns and market efficiency in agricultural trade |
| title_sort | increasing returns and market efficiency in agricultural trade |
| topic | agricultural trade policies surveys return on investment trade profitability markets agricultural economics working capital labour efficiency |
| url | https://hdl.handle.net/10568/156519 |
| work_keys_str_mv | AT fafchampsmarcel increasingreturnsandmarketefficiencyinagriculturaltrade AT gabremadhinelenizaude increasingreturnsandmarketefficiencyinagriculturaltrade AT mintenbart increasingreturnsandmarketefficiencyinagriculturaltrade |