Incomplete, Slow, and Asymmetric Price Transmission in Ten Product Markets of Bolivia

Varela, Gonzalo J.

World Bank, Washington, DC

关键词: AGRICULTURAL ECONOMICS;    AIR;    ARBITRAGE;    AVERAGE PRICE;    BANANAS;   

DOI  :  10.1596/1813-9450-6291
RP-ID  :  WPS6291

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

With food prices on the rise,understanding the transmission of price shocks, bothinternationally and domestically, is central for tradepolicy analysis. This paper examines spatial marketintegration and its determinants for ten key food productsin Bolivia, across the four most important cities, and withthe world, over the period 1991-2008. Within Bolivia,markets for onions, chicken, sugar, and to a lower extentfor potatoes, cooking oil, wheat flour, and rice areintegrated. However, only chicken, sugar, cooking oil, andrice are integrated with world markets, with incomplete andslow transmission. The perennial result of asymmetric priceadjustment to foreign shocks also holds for Bolivia:domestic prices respond faster when the world priceincreases than when it decreases. This points to a perennialrecommendation: the importance of stimulating competitivepractices to avoid welfare redistribution due to imperfectcompetition. Infrastructure improvements will alsocontribute to accessible food prices for the poor.