Market Integration and Poverty

This paper examines the effects of market integration on household consumption using data on seven food and two energy markets across South Sudan. The analysis reveals that markets in South Sudan are highly segmented. Price differences for narrowly defined products, across cities exceed in some cases 100 percent. In addition, price volatility increased substantially following the imposition of the trade restrictions with Sudan. This increase tends to hurt disproportionately the poor, who cannot smooth purchasing decisions over time because of liquidity constraints. Transportation costs explain almost half of the variation in food prices across space, and improving the quality of roads has a large potential to reduce prices in the most expensive towns. On the basis of this price effect, the simulations suggest that bringing all road quality across states to that of primary roads can yield a reduction in poverty from the rate of 51.7 percent in 2009 to between 42.8 and 46.9 percent. These estimates have to be interpreted as conservative, as they do not take into account the second-order effects of road construction from increased trade that will result from better road connectivity.

Bibliographic Details

Main Authors:	Varela, Gonzalo, Cali, Massimiliano, Pape, Utz, Rojas, Esteban
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-02
Subjects:	SUBSTITUTION, WAREHOUSE, PRICE LEVELS, PRICE STABILIZATION, AIRPORT, STOCK, INCOME, INTEREST, TRANSPORT INFRASTRUCTURE, INTERNATIONAL AIRPORT, VEHICLES, TRANSPORTATION COSTS, ROAD BUILDING, AVERAGE PRICES, INFORMATION FLOWS, EXCHANGE, LIQUIDITY, TREND, ELASTICITY, GASOLINE, EFFECT OF FUEL PRICES, ROAD INFRASTRUCTURE, PRICE, ROUTES, MARKET ACCESS, REMOTE REGION, TRANSPORTATION INFRASTRUCTURE, DRIVERS, PUBLIC POLICY, PRICE STRUCTURE, SAVINGS, ROAD, TOLLS, COSTS, PRODUCTION STRUCTURE, ROAD NETWORK, TRANSPORT, LOW-INCOME COUNTRIES, FOOD PRICE, PRICE VOLATILITY, FIXED COSTS, SURPLUS, PRODUCTS, JOURNEYS, SUPPLY SHOCKS, MARKETS, CONNECTIVITY, DOMESTIC TRANSPORT, TRUE, PRICE SERIES, PRICE POLICY, ROAD IMPROVEMENT, PRODUCT, RURAL ROADS, ROUTE, GASOLINE PRICES, FUELS, FUEL COSTS, ROAD QUALITY, FOOD PRODUCTION, INFRASTRUCTURE, TAXES, PRICE CHANGE, EXPENDITURE, PRICE OF DIESEL, DATA AVAILABILITY, MARKET SEGMENTATION, TRAVEL, TRANSPORTATION, TRANSIT, POLICIES, INTERNATIONAL TRADE, VOLATILITY, BORDER CROSSING, BARRIERS, MARKET CONDITIONS, FINANCIAL CRISIS, AGRICULTURAL PRICE, VALUE, COMPETITIVENESS, TRADE DEFICIT, ACCESSIBILITY, DEMAND, CONSUMER PRICE, COMMERCIAL VEHICLES, PRICE CHANGES, EXPENDITURES, PRICE EFFECT, FUEL PRICES, PRICE ADJUSTMENT, SIGNALS, SALE, AVERAGE PRICE, MARKET, FOREIGN EXCHANGE, ENERGY PRICES, PRICE INCREASE, OUTPUT, ROADS, EXPOSURE, CAR, INFRASTRUCTURE INVESTMENTS, LENGTH OF ROADS, CROSSING, ECONOMIC DEVELOPMENT, REGIONAL INTEGRATION, TRADE, RAILROAD, PRICE DIFFERENTIAL, SECURITY, ECONOMIES OF SCALE, TRANSPORTATION COST, INVESTMENT, FUEL PRICE, SHARE, RAILROADS, HIGH TRANSPORT, SUPPLY, FUEL, PURCHASING, INVESTMENTS, MARKET INTEGRATION, COMMODITIES, PRICE VARIATIONS, FOOD PRICES, ARBITRAGE, TRANSPORT COSTS, MARKET CONDITION, COMMODITY PRICES, DIESEL, COMMERCIAL FARMING, TRAVEL TIME, COMMODITY, PRICES, PRICE DIFFERENTIALS,
Online Access:	http://documents.worldbank.org/curated/en/2016/02/25926775/market-integration-poverty-evidence-south-sudan https://hdl.handle.net/10986/23903
Tags:	Add Tag No Tags, Be the first to tag this record!