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Urban bias in price risk: The geography of food price distributions in low‐income economies

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  • Christopher Barrett

Abstract

The geography of agricultural marketing has important implications for the stochastic distribution of agricultural commodity prices. This article proposes that objective food price risk differs between rural and urban areas of infrastructure‐poor economies characterised by spatially concentrated patterns of foodgrains storage. This difference implies an urban bias having adverse welfare effects for peasants who seasonally switch between net food seller and net food buyer positions. Empirical analysis of rice price data from Madagascar suggests that price variability and skewness indeed differ between rural and urban areas in ways that adversely influence the relative welfare of rural peasants.

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  • 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.
    • Handle: RePEc:taf:jdevst:v:32:y:1996:i:6:p:830-849
    DOI: 10.1080/00220389608422442
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    Cited by:

    1. Dostie, B. & Haggblade, S. & Randriamamonjy, J., 2002. "Seasonal poverty in Madagascar: magnitude and solutions," Food Policy, Elsevier, vol. 27(5-6), pages 493-518.
    2. 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.
    3. Giana de Vargas Mores & Homero Dewes & Edson Talamini & José Eustáquio Ribeiro Vieira-Filho & Yasmin Gomes Casagranda & Guilherme Cunha Malafaia & Carlos Costa & Caroline Pauletto Spanhol-Finocchio & , 2022. "A Longitudinal Study of Brazilian Food Production Dynamics," Agriculture, MDPI, vol. 12(11), pages 1-11, October.
    4. Abdoulaye, Tahirou & Sanders, John H., 2003. "Improving Marketing Strategies To Accelerate Technological Change For The Basic Cereal: The Niger Case," 2003 Annual meeting, July 27-30, Montreal, Canada 22207, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. 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.
    6. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    7. Barrett, Christopher B., 1997. "Liberalization and food price distributions: ARCH-M evidence from Madagascar," Food Policy, Elsevier, vol. 22(2), pages 155-173, April.
    8. Tahirou Abdoulaye & John Sanders, 2005. "New Technologies, Marketing Strategies and Public Policy for Traditional Food Crops: Millet in Niger," Working Papers 05-07, Purdue University, College of Agriculture, Department of Agricultural Economics.
    9. Raballand, Gael & Macchi, Patricia & Merotto, Dino & Petracco, Carly, 2009. "Revising the roads investment strategy in rural areas : an application for Uganda," Policy Research Working Paper Series 5036, The World Bank.
    10. Gareth A. Jones & Stuart Corbridge, 2010. "The continuing debate about urban bias," Progress in Development Studies, , vol. 10(1), pages 1-18, January.
    11. Tahirou Abdoulaye & John H. Sanders, 2005. "Stages and determinants of fertilizer use in semiarid African agriculture: the Niger experience," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 167-179, March.
    12. Minten, Bart & Tamru, Seneshaw & Legesse, Ermias Engida & Kuma, Tadesse, 2018. "Supply chain from production areas to Addis Ababa," IFPRI book chapters, in: The economics of teff: Exploring Ethiopia’s biggest cash crop, chapter 11, pages 263-298, International Food Policy Research Institute (IFPRI).
    13. Bhattamishra, Ruchira & Barrett, Christopher B., 2010. "Community-Based Risk Management Arrangements: A Review," World Development, Elsevier, vol. 38(7), pages 923-932, July.
    14. 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).
    15. Abdoulaye, Tahirou & Sanders, John H., 2005. "New Technologies, Marketing Strategies And Public Policy For Traditional Food Crops: Millet In Niger," Staff Papers 28670, Purdue University, Department of Agricultural Economics.
    16. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
    17. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    18. Christine Moser & Christopher Barrett & Bart Minten, 2009. "Spatial integration at multiple scales: rice markets in Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 281-294, May.
    19. Uaiene, Rafael N., 2006. "Introduction of New Agricultural Technologies and Marketing Strategies in Central Mozambique," Food Security Collaborative Working Papers 55861, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Stifel, David C. & Randrianarisoa, Jean-Claude, 2006. "Agricultural policy in Madagascar: A seasonal multi-market model," Journal of Policy Modeling, Elsevier, vol. 28(9), pages 1023-1027, December.
    21. Upton Joanna, 2018. "Working Paper 304 - The Use of Cash Versus Food Transfers in Eastern Niger," Working Paper Series 2430, African Development Bank.

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