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.
This research was partially funded by the National Bureau of Economic Research Africa Project. We would like to thank three anonymous reviewers, Chris Udry Jonathan Robinson, and seminar participants at Boston College, the Center for Global Development, National Bureau of Economic Research, Northeast Universities Development Conference (NEUDC), Université de Clermont-Ferrand and University of Gottingen for their helpful comments and suggestions. All errors are our own.
Michael W. Klein
Michael Klein is grateful to the Bill and Melinda Gates foundation for funding this project.Stephen A. O'Connell
Stephen O'Connell served as a consultant to the International Growth Centre during the period of this research.
[My IGC work was in Tanzania and East Africa, but it totaled more than $10,000 in some years. This seems a bit of a stretch but IGC certainly does lots of research on West Africa.]