Spatial integration, transport costs, and the response of local prices to policy changes in Ghana
This paper investigates the respective roles of spatial integration and transport costs in explaining price changes in Ghana. We introduce a model of price formation and market integration that incorporates the price transmission process between local and central markets and also captures the implic...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Elsevier
1998
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/171669 |
| _version_ | 1855540658642616320 |
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| author | Badiane, Ousmane Shively, Gerald E. |
| author_browse | Badiane, Ousmane Shively, Gerald E. |
| author_facet | Badiane, Ousmane Shively, Gerald E. |
| author_sort | Badiane, Ousmane |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper investigates the respective roles of spatial integration and transport costs in explaining price changes in Ghana. We introduce a model of price formation and market integration that incorporates the price transmission process between local and central markets and also captures the implications for volatility of local prices. We explore the implications of the model for the time-path of price adjustments, as determined directly and indirectly through the marketing sector. We show that the price-adjustment process in a local market is determined by the degree of interdependence between that market and the central market in which a price-shock originates, and estimate the intertemporal and interspatial dynamics of the price adjustment process. Using data from wholesale maize markets in Ghana we find that reductions in local prices and local price variance following the introduction of economic reforms in 1983 can be traced to both local and central market forces, but that differences in the degree of market integration have important implications for long-run changes in transport costs and the evolution of prices in outlying markets. |
| format | Journal Article |
| id | CGSpace171669 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 1998 |
| publishDateRange | 1998 |
| publishDateSort | 1998 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1716692025-02-19T14:02:28Z Spatial integration, transport costs, and the response of local prices to policy changes in Ghana Badiane, Ousmane Shively, Gerald E. food prices economic policies This paper investigates the respective roles of spatial integration and transport costs in explaining price changes in Ghana. We introduce a model of price formation and market integration that incorporates the price transmission process between local and central markets and also captures the implications for volatility of local prices. We explore the implications of the model for the time-path of price adjustments, as determined directly and indirectly through the marketing sector. We show that the price-adjustment process in a local market is determined by the degree of interdependence between that market and the central market in which a price-shock originates, and estimate the intertemporal and interspatial dynamics of the price adjustment process. Using data from wholesale maize markets in Ghana we find that reductions in local prices and local price variance following the introduction of economic reforms in 1983 can be traced to both local and central market forces, but that differences in the degree of market integration have important implications for long-run changes in transport costs and the evolution of prices in outlying markets. 1998-08 2025-01-29T12:58:32Z 2025-01-29T12:58:32Z Journal Article https://hdl.handle.net/10568/171669 en Limited Access Elsevier Badiane, Ousmane; Shively, Gerald E. 1998. Spatial integration, transport costs, and the response of local prices to policy changes in Ghana. Journal of Development Economics 56(2): 411-431. https://doi.org/10.1016/S0304-3878(98)00072-8 |
| spellingShingle | food prices economic policies Badiane, Ousmane Shively, Gerald E. Spatial integration, transport costs, and the response of local prices to policy changes in Ghana |
| title | Spatial integration, transport costs, and the response of local prices to policy changes in Ghana |
| title_full | Spatial integration, transport costs, and the response of local prices to policy changes in Ghana |
| title_fullStr | Spatial integration, transport costs, and the response of local prices to policy changes in Ghana |
| title_full_unstemmed | Spatial integration, transport costs, and the response of local prices to policy changes in Ghana |
| title_short | Spatial integration, transport costs, and the response of local prices to policy changes in Ghana |
| title_sort | spatial integration transport costs and the response of local prices to policy changes in ghana |
| topic | food prices economic policies |
| url | https://hdl.handle.net/10568/171669 |
| work_keys_str_mv | AT badianeousmane spatialintegrationtransportcostsandtheresponseoflocalpricestopolicychangesinghana AT shivelygeralde spatialintegrationtransportcostsandtheresponseoflocalpricestopolicychangesinghana |