CID Working Paper No. 035, January 2000

Characteristics and Behaviour of African Commodity/Product Markets and Market Institutions and Their Consequences for Economic Growth*

Afeikhena Jerome and Olawale Ogunkola

Abstract

This study examines the characteristics and behaviour of key commodity/product markets and market institutions in Africa and their consequences for economic growth. Their contribution to economic growth appears to have been limited by high transaction costs and weak institutions. Government heavy intervention, persistent shortages of market infrastructure and lack of effective market information system, all contribute to the seemingly high transaction costs in these markets.

Keywords: markets, transaction costs, institutions

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*An earlier version of this paper, as a background paper, was presented at the Workshop on "Explaining African Economic Growth Performance," held at Harvard University, March 26-27, 1999. The workshop was sponsored by the African Economic Research Consortium and the Weatherhead Center for International Affairs.

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