Mobile Phones and Mozambique Traders

Size, Composition and Distribution of Reduced Transaction Costs

Bibliographic Data

ID11930004
AuthorsWouter Zant (0000-0002-0453-5403, Vrije Universiteit Amsterdam, corresponding author)
Year2023
Volume116
Pages102423-102423
Publication date2023-03-31
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueFood Policy (JOURNAL)
Journal identifiersISSN: 0306-9192 • E-ISSN: 1873-5657
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.foodpol.2023.102423
OpenAlexW4362465358
LanguageEN
Citations received2
References cited27

I use unique transport cost data along with spatial market prices to measure the size, composition and distribution of reduced transactions costs due to the roll-out of the mobile phone network in Mozambique. My estimations are based on weekly transport costs of maize grain and weekly maize market prices. The mobile phone roll-out explains a 9%-15% reduction in the spatial price dispersion of maize. The evidence suggests that 70% to 80% comes from lower transport costs. Traders use mobile phones for multiple alternative purposes which explains the large contribution of transport costs. The evidence also indicates that the reduction in spatial price dispersion corresponds with a relatively large drop in destination markets’ prices: the benefits of mobile phones appear to accrue mainly to urban consumer markets and much less to producer areas. My results are robust for the non-random roll-out of the mobile phone network and several other threats, and align with evidence found elsewhere in the literature

Agricultural economics · Business · Commerce · Database transaction · Distribution (mathematics · Economics · Microeconomics · Mobile phone · Phone · Price dispersion · Spatial dispersion · Telecommunications · Transaction cost · Computer Science · Consumer Market Behavior and Pricing · Digital Platforms and Economics · ICT Impact and Policies · Finance

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Open DOIOpen Access