The Journal of Development Studies vol:50 issue:5 pages:611-629
We study cereal markets in Ethiopia over the last decade, a period that has been characterised by important local changes, including strong economic growth, urbanisation, improved road and communication infrastructure, and higher adoption of modern inputs in agriculture. These changes are associated with better spatial price integration as well as with significant declines in real price differences between supplying and receiving markets and in cereal milling and retail margins. In short, important improvements have occurred in Ethiopia’s cereal marketing system. This is especially important because dysfunctional cereal markets were previously identified as an important cause of food insecurity in the country.