Spatial dynamics and determinants of Liberian rice market integration
2016
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Title
Spatial dynamics and determinants of Liberian rice market integration
Keywords
Monthly wholesale prices of imported rice were used to estimate the spatial dynamics of eight local
markets and the impact of infrastructure on spatial market integration. The results; based on
threshold and linear error correction models; indicate that Liberian rice markets are spatially
integrated; with four main price-transmission markets; Red-Light; Gbarnga; Saclepea and Buchanan.
Red-Light is the main entry market for imported rice. Its estimated period of outgoing price
transmission is about five months; with bad road conditions the likely impediment to more complete
market integration. In 12 of the 17 long-run; related market pairs; negative and positive price changes
are transmitted symmetrically. Asymmetry in five market pairs is potentially a result of localised
market power. Overall; integration responds positively to improved roads and negatively to spatial
separation and quality of communication. Markets could be better integrated by improving
transportation and market infrastructure.
Issue Date
2016
Publication Type
Journal Article
DOI and Other Identifiers
Record Identifier
https://ageconsearch.umn.edu/record/245938
PURL Identifier
http://purl.umn.edu/245938
Language
English
Published in
African Journal of Agricultural and Resource Economics
Volume
11
Issue
3
Page Range
183 - 196
JEL Codes
market integration
asymmetric transmission
Liberia
rice
asymmetric transmission
Liberia
rice