The Impact of the Market Information Service on Pricing Efficiency and Maize Price Transmission in Uganda

Report

A Cornell University working paper (WP 2007-12, August 2007) by Mugoya and colleagues on the effect of Uganda’s Market Information Service on pricing efficiency. It analyses weekly maize prices from 1995 to 2006 in Masindi, Kasese and Mbale compared with Kampala. Price transmission rose after the service began (in Kasese from 10 to 24 per cent, in Mbale from 19 to 36 per cent) and price gaps with Kampala narrowed by UShs 7 to 13 per kilogram. The authors estimate this generated about US$1.82 million in extra trade revenue in 2004.