Data and Replication files for The High and Falling Price of Cement in Africa
Principal Investigator(s): View help for Principal Investigator(s) Fabrizio Leone, Universite Libre de Bruxelles; Rocco Macchiavello, LSE; Tristan Reed, World Bank
Version: View help for Version V1
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Project Description
Summary:
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Prices for several intermediate inputs, including cement, are higher in developing economies---particularly in Africa. Combining recent data from the International Comparison Program with a global directory of cement firms we estimate an industry equilibrium model to distinguish between drivers of international price dispersion: demand, costs, conduct, and entry. Developing economies feature both higher marginal costs and higher markups. African markets are not characterized by less competitive conduct and, if anything, feature lower barriers to entry. The small size of many national markets, however, limits entry and competition and explains most of the higher markups and prices. Policy implications are discussed.
Scope of Project
Subject Terms:
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cement;
price dispersion;
africa;
market power;
market size
JEL Classification:
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L13 Oligopoly and Other Imperfect Markets
L61 Metals and Metal Products; Cement; Glass; Ceramics
O12 Microeconomic Analyses of Economic Development
L13 Oligopoly and Other Imperfect Markets
L61 Metals and Metal Products; Cement; Glass; Ceramics
O12 Microeconomic Analyses of Economic Development
Geographic Coverage:
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Africa,
World
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