Market integration in Mozambique: A non-parametric extension to the threshold model
Publisher
International Food Policy Research Institute/ Mozambique Strategy Support Program
Publication date
Location
https://www.ifpri.org/publication/market-integration-mozambique
Source / Citation
Van Campenhout, B. "Market integration in Mozambique: A non-parametric extension to the threshold model," IFPRI/MozzSSP Working Paper No. 4, November 2012.
Country
A well-integrated market system is central to a well-functioning market economy (Dercon, 1995). As production decisions are based on observed prices, the most efficient allocation of resources would come about when prices represent scarcity conditions. In other words, a large network of markets connected by fast and efficient arbitrage is needed in order to exploit spatial comparative advantages (Fackler and Goodwin, 2001).