The emergence of parallel markets in a transition economy: the case of Mozambique
1995
Sahn, D.E. | Desai, J.
The food rationing scheme in Maputo, Mozambique was intended to ensure food security for the poor. An analysis of survey data reveals that even households that possess ration cards are mainly reliant on parallel markets, instead of the ration system, for their purchases. The results indicate that market liberalization, including eliminating rationing, will at worst be neutral for the poor, and more likely be beneficial since the treasury will capture the rents associated with rationing that presently accrue to traders and parastatals.
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