IDEAS home Printed from https://ideas.repec.org/a/eee/agecon/v25y2001i1p59-70.html
   My bibliography  Save this article

Grain transport and rural credit in Mozambique: solving the space-time problem

Author

Listed:
  • Arndt, Channing
  • Schiller, Rico
  • Tarp, Finn

Abstract

This paper shows how credit market failures can lead to large welfare losses in grain markets by inducing increased transport for seasonal storage in locations with low credit costs. The burden of these welfare losses falls primarily on rural households. These conclusions are obtained from a spatial/temporal model solved using a mixed complementarity formulation that easily handles interest rate differentials across space. Efforts to address credit market failures and to improve the efficiency of rural storage should be given priority as opposed to the creation of large, formal sector grain collection centers.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Arndt, Channing & Schiller, Rico & Tarp, Finn, 2001. "Grain transport and rural credit in Mozambique: solving the space-time problem," Agricultural Economics, Blackwell, vol. 25(1), pages 59-70, June.
    • Handle: RePEc:eee:agecon:v:25:y:2001:i:1:p:59-70
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0169-5150(00)00084-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Takayama, T. & Uri, Noel, 1983. "A note on spatial and temporal price and allocation modeling : Quadratic programming or linear complementary programming?," Regional Science and Urban Economics, Elsevier, vol. 13(4), pages 455-470, November.
    2. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-597, September.
    3. Tsunemasa Kawaguchi & Nobuhiro Suzuki & Harry M. Kaiser, 1997. "A Spatial Equilibrium Model for Imperfectly Competitive Milk Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 851-859.
    4. Adelman, Irma, 1984. "Beyond export-led growth," World Development, Elsevier, vol. 12(9), pages 937-949, September.
    5. Bob Baulch, 1997. "Transfer Costs, Spatial Arbitrage, and Testing for Food Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 477-487.
    6. Willig, Robert D, 1979. "Consumer's Surplus without Apology: Reply," American Economic Review, American Economic Association, vol. 69(3), pages 469-474, June.
    7. Channing Arndt & Henning Tarp Jensen & Finn Tarp, 2000. "Stabilization and structural adjustment in Mozambique: an appraisal," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 299-323, April.
    8. Martin Benirschka & James K. Binkley, 1995. "Optimal Storage and Marketing Over Space and Time," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 512-524.
    9. Masters, William A. & Nuppenau, Ernst-August, 1993. "Panterritorial versus regional pricing for maize in Zimbabwe," World Development, Elsevier, vol. 21(10), pages 1647-1658, October.
    10. Adelman, Irma, 1984. "Beyond export-led growth," CUDARE Working Paper Series 309, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    11. Anthony Bottomley, 1975. "Interest Rate Determination in Underdeveloped Rural Areas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 279-291.
    12. Brennan, Donna & Williams, Jeffrey & Wright, Brian D, 1997. "Convenience Yield without the Convenience: A Spatial-Temporal Interpretation of Storage under Backwardation," Economic Journal, Royal Economic Society, vol. 107(443), pages 1009-1022, July.
    13. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November.
    14. C. Arndt & H.T. Jensen & S. Robinson & F. Tarp, 2000. "Marketing Margins and Agricultural Technology in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 121-137, October.
    15. William A. Masters & Paul V. Preckel, 1997. "A Spatial Analysis of Maize Marketing Policy Reforms in Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 514-523.
    16. Timmer, C. Peter, 1974. "A Model of Rice Marketing Margins in Indonesia," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 13(2), pages 1-24.
    17. McKenzie, George W, 1979. "Consumer's Surplus without Apology: Comment," American Economic Review, American Economic Association, vol. 69(3), pages 465-468, June.
    18. Anitesh Barua & Byungtae Lee, 1997. "An Economic Analysis of the Introduction of an Electronic Data Interchange System," Information Systems Research, INFORMS, vol. 8(4), pages 398-422, December.
    19. Jones, William O., 1984. "Economic Tasks for Food Marketing Boards in Tropical Africa," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 19(2), pages 1-26.
    20. E. Leigh Bivings, 1997. "The Seasonal and Spatial Dimensions of Sorghum Market Liberalization in Mexico," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 383-393.
    21. Vairam Arunachalam, 1997. "Electronic Data Interchange: Issues in Adoption and Management," Information Resources Management Journal (IRMJ), IGI Global, vol. 10(2), pages 22-31, April.
    22. Christopher Barrett, 1996. "Urban bias in price risk: The geography of food price distributions in low‐income economies," Journal of Development Studies, Taylor & Francis Journals, vol. 32(6), pages 830-849.
    23. Patrick T. Harker, 1986. "Alternative Models of Spatial Competition," Operations Research, INFORMS, vol. 34(3), pages 410-425, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andam, Kwaw S. & Johnson, Michael E. & Ragasa, Catherine & Kufoalor, Doreen S. & das Gupta, Sunipa, 2017. "A chicken and maize situation: The poultry feed sector in Ghana," IFPRI discussion papers 1601, International Food Policy Research Institute (IFPRI).
    2. Chen, Jing & Rozelle, Scott, 2003. "Market Emergence And The Rise And Fall Of Backyard Hog Production In China," 2003 Annual meeting, July 27-30, Montreal, Canada 21969, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Ruijs, Arjan & Schweigman, Caspar & Lutz, Clemens, 2003. "The Impact Of Transport- And Transaction-Cost Reductions On Food Markets In Developing Countries: Evidence For Tempered Expectations For Burkina Faso," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25866, International Association of Agricultural Economists.
    4. Abdoulaye, Tahirou & Sanders, John H., 2006. "New technologies, marketing strategies and public policy for traditional food crops: Millet in Niger," Agricultural Systems, Elsevier, vol. 90(1-3), pages 272-292, October.
    5. Langyintuo, Augustine S. & Lowenberg-DeBoer, James & Arndt, Channing, 2003. "Potential Impacts Of The Proposed West African Monetary Zone On Cowpea Trade In West And Central Africa," 2003 Annual meeting, July 27-30, Montreal, Canada 22236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper Series 52794, World Bank.
    7. Arndt, Channing & Hussain, M. Azhar & Salvucci, Vincenzo & Østerdal, Lars Peter, 2016. "Effects of food price shocks on child malnutrition: The Mozambican experience 2008/2009," Economics & Human Biology, Elsevier, vol. 22(C), pages 1-13.
    8. Ruijs, Arjan & Schweigman, Caspar & Lutz, Clemens, 2004. "The impact of transport- and transaction-cost reductions on food markets in developing countries: evidence for tempered expectations for Burkina Faso," Agricultural Economics, Blackwell, vol. 31(2-3), pages 219-228, December.
    9. Hmaed Najafi Alamdarlo & Fariba Riyahi & Mohamad Hasan Vakilpoor, 2019. "Wheat Self-Sufficiency, Water Restriction and Virtual Water Trade in Iran," Networks and Spatial Economics, Springer, vol. 19(2), pages 503-520, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arndt, Channing & Schiller, Rico & Philipsen, Annelotte, 1998. "Maize Markets And Rural Storage In Mozambique: A Spatial And Temporal Analysis," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20991, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Arndt, Channing & Schiller, Rico, 1998. "Storage of Maize in Mozambique Under Dualistic Credit Markets: A spatial and Temporal Analysis," MPRA Paper 63236, University Library of Munich, Germany.
    3. Hines, James Jr. & Hlinko, John C. & Lubke, Theodore J. F., 1995. "From each according to his surplus: Equi-proportionate sharing of commodity tax burdens," Journal of Public Economics, Elsevier, vol. 58(3), pages 417-428, November.
    4. Prabhat Vaze, "undated". "A Model of Inter-Regional Trade in Grains with Storage," Edinburgh School of Economics Discussion Paper Series 10, Edinburgh School of Economics, University of Edinburgh.
    5. Gunawardena, Aruni, 2012. "Effects of Increasing Agricultural Productivity: A Computable General Equilibrium Analysis for Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124313, Australian Agricultural and Resource Economics Society.
    6. Langyintuo, Augustine S. & Lowenberg-DeBoer, James & Arndt, Channing, 2003. "Potential Impacts Of The Proposed West African Monetary Zone On Cowpea Trade In West And Central Africa," 2003 Annual meeting, July 27-30, Montreal, Canada 22236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Andrew Coleman, 2007. "A model of spatial arbitrage with transport capacity constraints and endogenous transport prices," Reserve Bank of New Zealand Discussion Paper Series DP2007/05, Reserve Bank of New Zealand.
    8. Penzhorn, Niels & Arndt, Channing, 2002. "Maize Markets In Mozambique: Testing For Market Integration," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 41(2).
    9. Moser, Christine M. & Barrett, Christopher B. & Minten, Bart, 2005. "Missed opportunities and missing markets: Spatio-temporal arbitrage of rice in Madagascar," 2005 Annual meeting, July 24-27, Providence, RI 19338, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Tsuyoshi Sasaki, 2019. "Welfare evaluations and price indices with path dependency problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(1), pages 127-159, January.
    11. Andrew Coleman, 2007. "The pitfalls of estimating transactions costs from price data: evidence from trans-Atlantic gold-point arbitrage, 1886-1905," Reserve Bank of New Zealand Discussion Paper Series DP2007/07, Reserve Bank of New Zealand.
    12. Brockhaus, Jan & Kalkuhl, Matthias & Kozicka, Marta, 2016. "What Drives India’s Rice Stocks? Empirical Evidence," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235659, Agricultural and Applied Economics Association.
    13. Irma Adelman, 2017. "Confessioni di un'inguaribile romantica (Confessions of an incurable romantic)," Moneta e Credito, Economia civile, vol. 70(279), pages 239-263.
    14. Derek Headey, 2008. "The Principal Components of Growth in the Less Developed Countries," Kyklos, Wiley Blackwell, vol. 61(4), pages 568-598, November.
    15. Adelman, Irma & Berck, Peter, 1990. "Food security policy in a stochastic world," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 25-55, November.
    16. Taylor, J. Edward & Yunez-Naude, Antonio & Hampton, Steve, 1999. "Agricultural Policy Reforms and Village Economies: A Computable General-Equilibrium Analysis from Mexico," Journal of Policy Modeling, Elsevier, vol. 21(4), pages 453-480, July.
    17. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    18. Frechette, Darren L., 1999. "The Supply Of Storage Under Heterogeneous Expectations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    19. Mozumdar, Lavlu, 2012. "Agricultural productivity and food security in the developing world," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(1-2).
    20. Marks, Daan, 2010. "Unity or diversity? On the integration and efficiency of rice markets in Indonesia, c. 1920-2006," Explorations in Economic History, Elsevier, vol. 47(3), pages 310-324, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:25:y:2001:i:1:p:59-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.blackwell-synergy.com/loi/agec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.