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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The Emergence of Parallel Markets in a Transition Economy: The Case of Mozambique
Authors:Sahn, David E.ISNI
Desai, JaikishanISNI
Periodical:Food Policy
Geographic term:Mozambique
food policy
food market
illicit trade
Economics and Trade
Health and Nutrition
External link:https://doi.org/10.1016/0306-9192(95)00002-V
Abstract:Despite the emergent consensus on moving to liberalize food marketing, there remains a concern that such reforms will have adverse consequences for some of the poor. This paper, which is based on data from a survey held in 1991-1992, explores the implications of product market liberalization for the poor in Maputo (Mozambique), the major urban area served by the food rationing system. In examining State disengagement from food marketing, it also explores the consequence of rationing: the emergence of parallel markets for the subsidized good. In order to understand the distributional implications of market liberalization that eliminates rationing and results in prices of traded goods being determined by border prices, it also focuses on the question of who has access to official prices instead of relying on parallel markets. The results indicate that market liberalization, including eliminating rationing, will at worst be neutral for the poor, and more likely be beneficial since the treasury will capture the rents associated with rationing that presently accrue to traders and parastatals. Bibliogr., notes, ref., sum.