Product market price integration in developing countries

 

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dc.contributor.advisor Edwards, Lawrence en_ZA
dc.contributor.author Nchake, Mamello Amelia en_ZA
dc.date.accessioned 2014-07-31T12:23:22Z
dc.date.available 2014-07-31T12:23:22Z
dc.date.issued 2013 en_ZA
dc.identifier.citation Nchake, M. 2013. Product market price integration in developing countries. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/5724
dc.description Includes abstract.
dc.description Includes bibliographical references.
dc.description.abstract Widespread empirical evidence of price discrimination in markets for goods and services suggests that national markets should be viewed as segmented rather than integrated. Yet, this research is almost entirely driven by studies of price setting behaviour in developed countries. This thesis extends the empirical literature by providing new evidence on price setting behaviour and product market integration in developing countries using a unique data set of monthly product prices at the retail outlet level or regional level for Lesotho, South Africa and Botswana over the period 2002 to 2009. The thesis is comprised of three main chapters. The first chapter provides evidence that none of the time-dependent or state dependent theories of price setting behaviour are entirely consistent with the empirical features found in the data. Therefore, it is difficult to find one theory that can explain pricing behaviour economy-wide. Improvements can be made on the current theories of price setting to incorporate different characteristics of price setting that are specific to developed and developing countries. The second chapter examines the relationship between inflation and the frequency of price change and suggests that goods are characterised by state-dependent pricing andservices are characterised by time-dependent pricing, consistent with the presence of menucosts in goods and not in services. The dominance of South African retail chains in the Lesotho retail sector affects price setting behaviour in Lesotho. Product markets are more integrated, between Lesotho and South Africa, in the more tradable sectors. The differentia limpact of local, national and regional inflation on price setting behaviour suggests that product markets remain segmented, despite Lesotho’s membership of the Southern African Customs Union (SACU) and the Common Monetary Area (CMA). en_ZA
dc.language.iso eng en_ZA
dc.subject.other Economics en_ZA
dc.title Product market price integration in developing countries en_ZA
dc.type Doctoral Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department School of Economics en_ZA
dc.type.qualificationlevel Doctoral
dc.type.qualificationname PhD en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Nchake, M. A. (2013). <i>Product market price integration in developing countries</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/5724 en_ZA
dc.identifier.chicagocitation Nchake, Mamello Amelia. <i>"Product market price integration in developing countries."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2013. http://hdl.handle.net/11427/5724 en_ZA
dc.identifier.vancouvercitation Nchake MA. Product market price integration in developing countries. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2013 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/5724 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Nchake, Mamello Amelia AB - Widespread empirical evidence of price discrimination in markets for goods and services suggests that national markets should be viewed as segmented rather than integrated. Yet, this research is almost entirely driven by studies of price setting behaviour in developed countries. This thesis extends the empirical literature by providing new evidence on price setting behaviour and product market integration in developing countries using a unique data set of monthly product prices at the retail outlet level or regional level for Lesotho, South Africa and Botswana over the period 2002 to 2009. The thesis is comprised of three main chapters. The first chapter provides evidence that none of the time-dependent or state dependent theories of price setting behaviour are entirely consistent with the empirical features found in the data. Therefore, it is difficult to find one theory that can explain pricing behaviour economy-wide. Improvements can be made on the current theories of price setting to incorporate different characteristics of price setting that are specific to developed and developing countries. The second chapter examines the relationship between inflation and the frequency of price change and suggests that goods are characterised by state-dependent pricing andservices are characterised by time-dependent pricing, consistent with the presence of menucosts in goods and not in services. The dominance of South African retail chains in the Lesotho retail sector affects price setting behaviour in Lesotho. Product markets are more integrated, between Lesotho and South Africa, in the more tradable sectors. The differentia limpact of local, national and regional inflation on price setting behaviour suggests that product markets remain segmented, despite Lesotho’s membership of the Southern African Customs Union (SACU) and the Common Monetary Area (CMA). DA - 2013 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2013 T1 - Product market price integration in developing countries TI - Product market price integration in developing countries UR - http://hdl.handle.net/11427/5724 ER - en_ZA


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