The spatial integration of livestock markets in Niger

Livestock makes an important contribution to the livelihood of Sahelian farmers and herders and is a source of self-insurance against income shocks. By allocating livestock efficiently over space, spatial market integration should foster a sustainable use of pasture resources. It is also expected to...

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Detalles Bibliográficos
Autores principales: Fafchamps, M., Gavian, S.
Formato: Journal Article
Lenguaje:Inglés
Publicado: 1996
Materias:
Acceso en línea:https://hdl.handle.net/10568/28817
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author Fafchamps, M.
Gavian, S.
author_browse Fafchamps, M.
Gavian, S.
author_facet Fafchamps, M.
Gavian, S.
author_sort Fafchamps, M.
collection Repository of Agricultural Research Outputs (CGSpace)
description Livestock makes an important contribution to the livelihood of Sahelian farmers and herders and is a source of self-insurance against income shocks. By allocating livestock efficiently over space, spatial market integration should foster a sustainable use of pasture resources. It is also expected to favour the sharing of risk across regions by smoothing idiosyncratic price variations. Using monthly livestock price data from Niger, we show that livestock markets are poorly integrated. Prices are seldom cointegrated, suggesting that large price differentials occasionally persist between adjacent areas for long periods of time. A parity bounds approach indicates that one has to assume high transportation costs and large quality variations to reconcile the data with efficient spatial arbitrage. These results confirm descriptive studies that have emphasised regional segmentation in West African livestock trade.
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spelling CGSpace288172023-02-15T09:49:18Z The spatial integration of livestock markets in Niger Fafchamps, M. Gavian, S. livestock markets Livestock makes an important contribution to the livelihood of Sahelian farmers and herders and is a source of self-insurance against income shocks. By allocating livestock efficiently over space, spatial market integration should foster a sustainable use of pasture resources. It is also expected to favour the sharing of risk across regions by smoothing idiosyncratic price variations. Using monthly livestock price data from Niger, we show that livestock markets are poorly integrated. Prices are seldom cointegrated, suggesting that large price differentials occasionally persist between adjacent areas for long periods of time. A parity bounds approach indicates that one has to assume high transportation costs and large quality variations to reconcile the data with efficient spatial arbitrage. These results confirm descriptive studies that have emphasised regional segmentation in West African livestock trade. 1996 2013-05-06T07:01:29Z 2013-05-06T07:01:29Z Journal Article https://hdl.handle.net/10568/28817 en Limited Access Journal of African Economies;5(3): 366-405
spellingShingle livestock
markets
Fafchamps, M.
Gavian, S.
The spatial integration of livestock markets in Niger
title The spatial integration of livestock markets in Niger
title_full The spatial integration of livestock markets in Niger
title_fullStr The spatial integration of livestock markets in Niger
title_full_unstemmed The spatial integration of livestock markets in Niger
title_short The spatial integration of livestock markets in Niger
title_sort spatial integration of livestock markets in niger
topic livestock
markets
url https://hdl.handle.net/10568/28817
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