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The Effect of ICT-Based Market Information Services on the Performance of Agricultural Markets: Experiences from Ghana
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Author(s): Irene S. Egyir (University of Ghana, Legon, Ghana), Ramatu M. Al-Hassan (University of Ghana, Legon, Ghana)and James K. Abakah (University of Ghana, Legon, Ghana)
Copyright: 2013
Pages: 13
Source title:
Technology, Sustainability, and Rural Development in Africa
Source Author(s)/Editor(s): Blessing Maumbe (Bindura University of Science Education, Zimbabwe)and Julius J. Okello (University of Nairobi, Kenya)
DOI: 10.4018/978-1-4666-3607-1.ch005
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Abstract
This study is concerned with how markets of agricultural commodities have responded to the improved ICT-based market information services in Ghana since 2005. The data employed are monthly prices wholesale from 2001-2010, covering four markets in the Northern and Greater Accra regions. The data was used to estimate a threshold autoregressive model to measure the level of spatial price integration between the four markets, and focusing on maize. In addition, data on market structure and conduct was collected from 486 marketers to explain performance indicators. The study finds that, the speed of price transmission in maize markets increased by 6 percent after 2005, however there has not been marked reduction in transactions costs. Despite increased use of the mobile phone, market-based exchanges still rely heavily on visual inspection. The implication is that more should be done to improve transport infrastructure and to ensure enforcement of standardization rules.
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