The Spatial Integration of Livestock Markets in Niger

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Periodical article

Title:	The Spatial Integration of Livestock Markets in Niger
Authors:	Fafchamps, Marcel Gavian, Sarah
Year:	1996
Periodical:	Journal of African Economies
Volume:	5
Issue:	3
Pages:	366-405
Language:	English
Geographic term:	Niger
Subjects:	prices animal husbandry marketplaces Agriculture, Natural Resources and the Environment Economics and Trade
External link:	https://jae.oxfordjournals.org/content/5/3/366.full.pdf
Abstract:	Livestock makes an important contribution to the livelihood of Sahelian farmers and herders and is a source of self-insurance against income shocks. By allocating livestock efficiently over space, spatial market integration should foster a sustainable use of pasture resources. It is also expected to favour the sharing of risk across regions by smoothing idiosyncratic price variations. Using monthly livestock price data on fifteen animal categories from Niger for the period 1968-1988, the authors show that livestock markets are poorly integrated. Prices are seldom cointegrated, suggesting that large price differentials occasionally persist between adjacent areas for long periods of time. A parity bounds approach indicates that one has to assume high transportation costs and large quality variations to reconcile the data with efficient spatial arbitrage. These results confirm descriptive studies that have emphasized regional segmentation in West African livestock trade. Bibliogr., notes, ref., sum.