The High and Falling Price of Cement in AfricaIndian Rupee

• 成果类型: Article
• 署名作者: Leone, Fabrizio; Macchiavello, Rocco; Reed, Tristan
• 署名单位: Universite Libre de Bruxelles; University of London; London School Economics & Political Science; Centre for Economic Policy Research - UK; The World Bank
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20230352
• 发表日期: 2025
• 页码: 1-40
• 关键词: multimarket contact; market power; oligopoly; industry; models; cartel; entry

摘要

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. Yet the small size of many national markets limits entry and competition and explains most of the higher markups and prices. Policy implications are discussed. (JEL D24, L13, L61, O14)