Infrastructure investments, regional trade agreements and agricultural market integration in Mozambique

Abstract

Integration of agricultural markets has been a topic of great interest in Mozambique. Numerous studies have been conducted to assess both domestic and regional integration of maize markets in the country, though with some contradictory results. In this study domestic and regional market integration in Mozambique is assessed, focusing on maize markets as the main crop in the country. In contrast to previous work, this study takes into account new investments in infrastructure as well as changes in regional trade policies, using vector autoregressive (VAR) and vector error correction (VEC) models. The main findings suggest that maize markets in Mozambique are not efficiently integrated. This i..