| Summary: | This article aims to assess the spatial integration and transmission of maize prices in eight markets in Benin. The results of the econometric tests and the Ravallion (1986) model show that maize prices in the markets (7) are integrated to that of the market of Parakou (reference). The long-run transmission elasticity appears to be important. The Ravallion type model reveals an asymmetric transmission, the magnitude of which differs according to the nature of the shocks in the eight markets. Fluctuations in maize prices are more rapidly transmitted to Beninese markets close to Nigeria (Parakou, Nikki, Pobé and Dantokpa). These results can be explained by the market power of people living the borders of Benin with Nigeria. These markets are frequently operated by commercial intermediaries, mainly from Nigeria. Transport costs, prohibitive taxes and, above all, the ransoming of Customs administrative agents, strongly influence informal trade. In the context of cross-border trade benefits to traders in Benin and Nigeria, government intervention mechanisms in the free movement of goods is necessary in order to efficiently absorb the functioning and integration of agricultural markets in the African space.
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