Competition in Kenyan Markets and its Impact on Income and Poverty: A Case Study on Sugar and Maize

Argent, Jonathan; Gomez, Tania Priscilla Begazo

doi:10.1596/1813-9450-7179

Cited by 17 publications

(15 citation statements)

References 10 publications

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“…Anti-competitive practices in cement and retail fuel markets affect relatively more the poor through higher consumer prices for goods transported by road, higher public transportation prices or more expensive public housing policies for the poorest (OECd 2013). Similar effects on the poor from lack of competition have been found in other countries (Argent and Begazo Gomez 2015;world Bank 2016b). 14.…”

Section: Notessupporting

confidence: 73%

Jobs and Growth: Brazil's Productivity Agenda

Dutz¹,

Amorim²,

Araujo³

et al. 2018

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Books in this series are published to communicate the results of Bank research, analysis, and operational experience with the least possible delay. The extent of language editing varies from book to book. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

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Section: Notessupporting

confidence: 73%

Jobs and Growth: Brazil's Productivity Agenda

Dutz¹,

Amorim²,

Araujo³

et al. 2018

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“…The median household spends 9 percent of its annual expenditure on maize (and the poorest decile spends 14 percent). On the production side, about one-half of all Kenyan households grows maize (Argent and Begazo 2015). The functionality of these staple commodity markets is therefore of significant importance for household welfare.…”

Section: Maize Markets In Kenyamentioning

confidence: 99%

Competition and Entry in Agricultural Markets: Experimental Evidence from Kenya

Bergquist

Dinerstein

2020

American Economic Review

103

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African agricultural markets are characterized by low farmer revenues and high consumer food prices. Many have worried that this wedge is partially driven by imperfect competition among intermediaries. This paper provides experimental evidence from Kenya on intermediary market structure. Randomized cost shocks and demand subsidies are used to identify a structural model of market competition. Estimates reveal that traders act consistently with joint profit maximization and earn median markups of 39 percent. Exogenously induced firm entry has negligible effects on prices, and low take-up of subsidized entry offers implies large fixed costs. We estimate that traders capture 82 percent of total surplus. (JEL L13, O13, Q11, Q12, Q13)

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“…Reducing trade barriers also exerts competitive pressure that lead to lower markups and lower prices and helps reduce rents earned by monopolies and cartels (Levinsohn, 1993;Harrison, 1994, Edmond, Midrigan, andXu, 2015). For example, Argent and Begazo (2015) estimate that 40,000 families could be brought out of poverty by removing trade barriers that protect Kenya's concentrated sugar market and its high prices. Likewise, replacing Nigeria's import bans with an average level of tariffs could allow 3.3 million people to escape poverty (Cadot and others, 2018).…”

Section: Merchandise Exports As a Share Of Gdp And Gdp Per Capita 2014mentioning

confidence: 99%

Trade and Inclusive Growth

Cerra¹

2021

IMF Working Papers

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This paper surveys the literature on the relationship between international trade and inclusive growth. It examines claims that the rise in inequality in many countries can be attributed to the concurrent rise in trade competition, especially from EMEs like China, spurring trade tensions and protectionist measures. The paper investigates the conflicting literature showing the aggregate benefits of trade versus the adverse and persistent impact of trade, especially import competition, on specific industries and local communities. The paper then reviews the evidence for using trade policies and other complementary policies for adjustment and compensation to those groups adversely affected by trade.

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Competition in Kenyan Markets and its Impact on Income and Poverty: A Case Study on Sugar and Maize

Cited by 17 publications

References 10 publications

Jobs and Growth: Brazil's Productivity Agenda

Jobs and Growth: Brazil's Productivity Agenda

Competition and Entry in Agricultural Markets: Experimental Evidence from Kenya

Trade and Inclusive Growth

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