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Market Integration and the Role of Transportation and Telecommunication Infrastructure: Insights for Agri-Food Value Chains Efficiency in Ghana

Published online by Cambridge University Press:  15 May 2025

Francis Tsiboe
Affiliation:
Agricultural Risk Policy Center (ARPC), North Dakota State University, Fargo, ND, USA
Abigail Ampomah Adaku*
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Ghana, Legon, Accra, Ghana
Catherine Obiribea Ofori-Bah
Affiliation:
Department of Agricultural Economics, Kansas State University, Manhattan, KS, USA
*
Corresponding author: Abigail Ampomah Adaku; Email: aaadaku@ug.edu.gh
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Abstract

This research explores the integration of regional markets for 21 food commodities in Ghana. Utilizing co-integration tests and autoregressive distributed lag models, it investigates price linkages and market responsiveness, also considering the impact of telecommunications and road infrastructure. The study reveals that markets generally adjust quicker to price increases than decreases, with disparities noted in specific regions and commodities. It emphasizes the importance of improving internet speeds and road quality to enhance market integration, suggesting policy measures to sustain and optimize agri-food networks amid global disruptions.

Information

Type
Research Article
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NC
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial licence (https://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original article is properly cited. The written permission of Cambridge University Press must be obtained prior to any commercial use.
Copyright
© The Author(s), 2025. Published by Cambridge University Press on behalf of Southern Agricultural Economics Association
Figure 0

Figure 1. Flow diagram of Ghana’s food commodity trade.

Figure 1

Figure 2. Empirical framework for analyzing market integration.

Figure 2

Table 1. Panel descriptive, unit-root, and cointegration for regional monthly food prices in Ghana from Jan/2010 to Dec/2019

Figure 3

Table 2. Factors influencing food market integration in Ghana from Jan/2010 to Dec/2019

Figure 4

Figure 3. Commodity price adjustment period length in Ghana from Jan/2010 to Dec/2019. Notes: Values were estimated by applying a Three Regime Integrated Threshold Autoregressive Distributed Lag Models to monthly regional prices from Jan/2010 to Dec/2019.

Figure 5

Table 3. Influential regions for food markets in Ghana from Jan/2010 to Dec/2019

Figure 6

Figure 4. Commodity specific transaction cost in Ghana from Jan/2010 to Dec/2019. Notes: Values were estimated by applying a Three Regime Integrated Threshold Autoregressive Distributed Lag Models to monthly regional prices from Jan/2010 to Dec/2019.