Trains, Trade, and Transaction Costs
We measure the impact of low-cost transport by rail in Malawi on the dispersion of agricultural commodity prices across markets by exploiting the quasi-experimental design of the nearly total collapse of domestic transport by rail in January 2003 due to the destruction of a railway bridge at Rivirivi, Balaka. Estimations are based on monthly market prices of four agricultural commodities (maize, groundnuts, rice, and beans) in 27 local markets for the period 1998–2006. Market pairs connected by rail when the railway line was operational are intervention observations. Railway transport services explain a 14 to 17 percent reduction in price dispersion across markets. Geographical reach of trade varies by crop, most likely related to storability and geographical spread of production. Perishability appears to increase impact, reflecting limited scope for arbitrage. Overall, impacts are remarkably similar in size across commodities.
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| Format: | Journal Article biblioteca |
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Published by Oxford University Press on behalf of the World Bank
2018-06
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| Subjects: | DOMESTIC TRADE, CROP PRICES, TRANSACTION COSTS, RAIL INFRASTRUCTURE, |
| Online Access: | http://hdl.handle.net/10986/32780 http://dx.doi.org/10.1596/32780 |
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dig-okr-10986327802023-04-04T13:12:10Z Trains, Trade, and Transaction Costs How Does Domestic Trade by Rail Affect Market Prices of Malawi Agricultural Commodities? Zant, Wouter DOMESTIC TRADE CROP PRICES TRANSACTION COSTS RAIL INFRASTRUCTURE We measure the impact of low-cost transport by rail in Malawi on the dispersion of agricultural commodity prices across markets by exploiting the quasi-experimental design of the nearly total collapse of domestic transport by rail in January 2003 due to the destruction of a railway bridge at Rivirivi, Balaka. Estimations are based on monthly market prices of four agricultural commodities (maize, groundnuts, rice, and beans) in 27 local markets for the period 1998–2006. Market pairs connected by rail when the railway line was operational are intervention observations. Railway transport services explain a 14 to 17 percent reduction in price dispersion across markets. Geographical reach of trade varies by crop, most likely related to storability and geographical spread of production. Perishability appears to increase impact, reflecting limited scope for arbitrage. Overall, impacts are remarkably similar in size across commodities. 2019-12-04T22:13:38Z 2019-12-04T22:13:38Z 2018-06 Journal Article Article de journal Artículo de revista World Bank Economic Review 1564-698X http://hdl.handle.net/10986/32780 http://dx.doi.org/10.1596/32780 World Bank Economic Review CC BY-NC-ND 3.0 IGO World Bank http://creativecommons.org/licenses/by-nc-nd/3.0/igo application/pdf Published by Oxford University Press on behalf of the World Bank |
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DOMESTIC TRADE CROP PRICES TRANSACTION COSTS RAIL INFRASTRUCTURE DOMESTIC TRADE CROP PRICES TRANSACTION COSTS RAIL INFRASTRUCTURE |
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DOMESTIC TRADE CROP PRICES TRANSACTION COSTS RAIL INFRASTRUCTURE DOMESTIC TRADE CROP PRICES TRANSACTION COSTS RAIL INFRASTRUCTURE Zant, Wouter Trains, Trade, and Transaction Costs |
| description |
We measure the impact of low-cost transport by rail in Malawi on the dispersion of agricultural commodity prices across markets by exploiting the quasi-experimental design of the nearly total collapse of domestic transport by rail in January 2003 due to the destruction of a railway bridge at Rivirivi, Balaka. Estimations are based on monthly market prices of four agricultural commodities (maize, groundnuts, rice, and beans) in 27 local markets for the period 1998–2006. Market pairs connected by rail when the railway line was operational are intervention observations. Railway transport services explain a 14 to 17 percent reduction in price dispersion across markets. Geographical reach of trade varies by crop, most likely related to storability and geographical spread of production. Perishability appears to increase impact, reflecting limited scope for arbitrage. Overall, impacts are remarkably similar in size across commodities. |
| format |
Journal Article |
| topic_facet |
DOMESTIC TRADE CROP PRICES TRANSACTION COSTS RAIL INFRASTRUCTURE |
| author |
Zant, Wouter |
| author_facet |
Zant, Wouter |
| author_sort |
Zant, Wouter |
| title |
Trains, Trade, and Transaction Costs |
| title_short |
Trains, Trade, and Transaction Costs |
| title_full |
Trains, Trade, and Transaction Costs |
| title_fullStr |
Trains, Trade, and Transaction Costs |
| title_full_unstemmed |
Trains, Trade, and Transaction Costs |
| title_sort |
trains, trade, and transaction costs |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2018-06 |
| url |
http://hdl.handle.net/10986/32780 http://dx.doi.org/10.1596/32780 |
| work_keys_str_mv |
AT zantwouter trainstradeandtransactioncosts AT zantwouter howdoesdomestictradebyrailaffectmarketpricesofmalawiagriculturalcommodities |
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1767603769911017472 |