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Market institutions: Enhancing the Value of Rural-Urban Links

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  • Chowdhury, Shyamal
  • Negassa, Asfaw
  • Torero, Maximo

Abstract

"This paper examines how market institutions can affect links between urban and rural areas with specific emphasis on goods market integration in the national context.Traditionally, development researchers and practitioners have focused either on rural market development or on urban market development without considering the interdependencies and synergies between the two. However, more than ever before, emerging local and global patterns such as the modern food value-chain led by supermarkets and food processors, rapid urbanization, changes in dietary composition, and enhanced information and communication technologies point to the need to pay close attention to the role of markets both in linking rural areas with intermediate cities and market towns and promotion of economic development and poverty reduction. This paper begins with a presentation of a conceptual framework of market integration and then identifies five major factors that increase the transfer costs that subsequently hinder market integration between rural and urban areas: information asymmetry, transaction costs, transport and communication costs, policy induced barriers, and social and noneconomic factors. Five specific cases in five developing countries are examined in this study to demonstrate the primary sources of transfer costs and the aspects of market institutions that are important to market integration and promotion of rural-urban linkages." from Authors' Abstract

Suggested Citation

  • Chowdhury, Shyamal & Negassa, Asfaw & Torero, Maximo, 2005. "Market institutions: Enhancing the Value of Rural-Urban Links," FCND discussion papers 195, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcnddp:195
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    Cited by:

    1. Sanogo, Issa, 2006. "Spatial Integration of the Rice Market: Empirical Evidence from Mid-west and Far-west Nepal, and the Nepalese-Indian Border," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 3(1-2), pages 1-18, December.
    2. Maria Costanza Torri, 2012. "Innovative Farmer Institutions and Market Imperfections," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 21(1), pages 59-90, March.
    3. Sekabira, Haruna & Qaim, Matin, 2016. "Mobile Phone Technologies, Agricultural Production Patterns, and Market access in Uganda," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246310, African Association of Agricultural Economists (AAAE).
    4. Getnet, Kindie & Kefyalew, Geremew & Berhanu, Wassie, 2018. "On the power and influence of the cooperative institution: Does it secure competitive producer prices?," World Development Perspectives, Elsevier, vol. 9(C), pages 43-47.
    5. Sanogo, Issa, 2008. "SPATIAL integration of the rice market: emprirical evidence from mid-west and far-west Nepal and the Nepalese-Indian border," MPRA Paper 14488, University Library of Munich, Germany.
    6. Ahmed, Mohamed M. & Balie, Jean, 2016. "Why is it important to measure the Market Development Gap? An application to the agricultural sector of Uganda," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246446, African Association of Agricultural Economists (AAAE).

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    Keywords

    Rural-urban linkages ;

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