Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/177685
Title: 
Authors: 
Zant, Wouter
Year of Publication: 
2017
Series/Report no.: 
Tinbergen Institute Discussion Paper 17-117/V
Abstract: 
We estimate to what extent bridges in Mozambique lead to transport cost reductions and attribute these reductions to key determinants, in particular road distance, road quality and crossing borders. For identification we exploit the introduction of a road bridge over the Zambezi river, in August 2009 between Caia and Chimuara, with the simultaneously completed rehabilitation of the railway bridge between Vila de Sena and Mutarara, which jointly create variation in optimal trading itineraries between markets. Estimations, based on monthly maize prices in 24 markets, for up to five years before and after the (re)introduction of the bridges, are conditioned on spatial price equilibrium with market integration. Bridges explain a reduction of transport costs, averaged over itineraries, from 17% to 42% (ATT). Results are shown to be robust for the non-random bridge placement and various other threats. Reduction in transport costs for particular itineraries is occasionally even larger, and is, generally, mainly due to road distance and modestly to road quality.
Subjects: 
agricultural markets
transport costs
bridges
Mozambique
sub-Sahara Africa
JEL: 
D23
D61
O13
O18
Q13
R41
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
1.1 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.