International and Intranational Market Segmentation and Integration in West Africa

We use data on monthly prices of three agricultural goods in local markets in Niger and Nigeria to analyze the extent and sources of market integration, both across the international border and across ethnically diverse regions within Niger. We find that the international border effect is statistically significant, but of limited economic magnitude as compared to what has been found for industrial countries. Furthermore, the international border effect is mitigated when participants in cross-border markets have access to mobile phones. Within Niger, there is evidence of a de facto intra-national border between the Hausa and Zarma regions, The impact of this internal border on market segmentation is statistically significant and larger in magnitude than the impact of the Niger/Nigeria border.