Post-Liberalization Markets, Export Firm Concentration, and Price Transmission along Nigerian Cocoa Supply Chains

 This study examines whether major Nigerian export firms exert market power over Nigerian cocoa farmers in the form of incomplete price transmission. A common indicator of efficient and functioning markets is the presence of a high level of market integration, while a lack of integration could be an indication of private traders’ market power. This study pays special attention to export firms’ pricing behavior in the post-liberalization period. Our analyses are based on (i) monthly firm-level price data from major Nigerian cocoa beans exporting companies and (ii) monthly farm gate prices between 1986 and 2009.