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The Effect of Distance and Road Quality on Food Prices, Marketing Margins, and Traders' Wages: Evidence from Zaire

dc.contributor.authorMinten, Bart
dc.contributor.authorKyle, Steven C.
dc.date.accessioned2019-10-15T18:33:28Z
dc.date.available2019-10-15T18:33:28Z
dc.date.issued1995-09
dc.description.abstractMajor investments in infrastructure rehabilitation have been undertaken by govemments, development banks and donors in developing countries in recent decades. In Sub-Saharan Africa roaddeterioration isperceivedtobeoneofthemaincausesforthelimitedsupplyresponseafter price liberalization in agricultural markets. Studies of the quantitative effects on marketing margins are rare. This analysis shows that the wholesale -producer food price margin is strongly influenced by the quality of the road infrastructure. Evidence from Zaire shows that food prices decrease faster than transportation costs increase and that traders' wages are higher on bad roads. A trader's model incorporating uncertainty in input costs is used to explain this phenomenon.
dc.identifier.urihttps://hdl.handle.net/1813/68226
dc.language.isoen_US
dc.publisherCharles H. Dyson School of Applied Economics and Management, Cornell University
dc.titleThe Effect of Distance and Road Quality on Food Prices, Marketing Margins, and Traders' Wages: Evidence from Zaire
dc.typearticle
dcterms.licensehttp://hdl.handle.net/1813/57595

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