The effect of distance and road quality on food collection, marketing margins, and traders' wages: evidence from the former Zaire |
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Authors: | Bart Minten Steven Kyle |
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Institution: | a Department of Agricultural and Environmental Economics, International Food Policy Research Institute, K.U. Leuven de Croylaan 42, 3001 Leuven, Belgium;b Department of Agricultural, Resource and Managerial Economics, Cornell University, Warren Hall, Ithaca, NY 14853, USA |
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Abstract: | Food price variation is typical of the food economies of many low income countries. The presence or absence of road infrastructure is perceived to be one of the main determinants of this variation. This analysis shows that in the case of the former Zaire, food price dispersion is significant both across products and across regions. It is demonstrated that transportation costs explain most of the differences in food prices between producer regions and that road quality is an important factor in the transportation costs. However, food prices decrease relatively faster than transportation costs increase and traders' wages are higher on bad roads. |
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Keywords: | Infrastructure Transport costs Food prices Marketing margins Sub-Saharan Africa |
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