Grain transport and rural credit in Mozambique: solving the space-time problem

This paper shows how credit market failures can lead to large welfare losses in grain markets by inducing increased transport for seasonal storage in locations with low credit costs. The burden of these welfare losses falls primarily on rural households. These conclusions are obtained from a spatial/temporal model solved using a mixed complementarity formulation that easily handles interest rate differentials across space. Efforts to address credit market failures and to improve the efficiency of rural storage should be given priority as opposed to the creation of large, formal sector grain collection centers. © 2001 Elsevier Science B.V. All rights reserved.


Issue Date:
2001-06
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/176956
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 25, Issue 1
Page range:
59-70
Total Pages:
12
JEL Codes:
01; Q1; R1




 Record created 2017-04-01, last modified 2017-08-27

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