Record Details

Spatial market integration of food markets during a shock: Evidence from food markets in Nigeria

CGSpace

View Archive Info
 
 
Field Value
 
Title Spatial market integration of food markets during a shock: Evidence from food markets in Nigeria
 
Creator Amare, Mulubrhan
Abay, Kibrom A.
Hatzenbuehler, Patrick L.
 
Subject food prices
COVID-19
markets
infrastructure
digital technology
 
Description This paper uses comprehensive and long time series monthly food price data and a panel dyadic regression framework to evaluate the impact of the COVID-19 pandemic and associated policy responses on spatial market integration across a diverse set of food items in Nigeria. The empirical results reveal several important insights. First, we show that a significant slowdown in the speed of adjustment and price transmission occurred during the pandemic. For some food items, the speed of adjustment and, by implication, spatial market integration weakened by two- to-threefold after the pandemic outbreak. The effect was especially pronounced for perishable food items. Second, lockdown measures and the spread of the pandemic triggered additional dispersion in market prices across markets. For example, lockdown measures were associated with a 5–10 percent reduction in the speed of readjustment toward long-term equilibrium. Third, additional underlying attributes of markets, including lack of access to digital infrastructure and distance between markets, exacerbated impacts associated with the pandemic. For instance, access to Internet service reduced the slowdown in the speed of adjustment caused by the pandemic, but longer distances between market pairs induced greater slowdown in the speed of price transmission. Our findings offer important insights for revitalizing the efficiency of food markets affected by the pandemic. The heterogenous impacts of the pandemic across value chains and markets reinforce the need to properly target post-pandemic recovery interventions and investments. Finally, we offer some insights to reduce the vulnerability of food and market systems to disruptions in future pandemics or similar phenomena that inhibit food marketing and trade.
 
Date 2023-11-07
2023-11-08T21:52:41Z
2023-11-08T21:52:41Z
 
Type Working Paper
 
Identifier Amare, Mulubrhan; Abay, Kibrom A.; and Hatzenbuehler, Patrick L. 2023. Spatial market integration of food markets during a shock: Evidence from food markets in Nigeria. IFPRI Discussion Paper 2202. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136963
https://hdl.handle.net/10568/132859
https://doi.org/10.2499/p15738coll2.136963
 
Language en
 
Relation IFPRI Discussion Paper
 
Rights Copyrighted; all rights reserved
Open Access
 
Format 47 p.
application/pdf
 
Publisher International Food Policy Research Institute