Analysis of spatial Integration of Bean Markets prices in South Kivu, North Kivu, and Tanganyika, DRC: A Cointegration Approach

Bean markets in the provinces of South Kivu, North Kivu, and Tanganyika in the Democratic Republic of Congo face significant challenges, including rising prices and inefficiencies in market integration. The price of beans has more than tripled in recent years, exacerbating food insecurity and economic vulnerability. However, limited empirical research has explored the spatial integration of these markets, despite its importance for policy interventions. This study analyzes the degree of market integration using monthly retail price data from 2017 to 2024 sourced from the National Agricultural Statistics Service. The analysis employs cointegration techniques, including the Augmented Dickey-Fuller test, Error Correction Models (ECM), and the Market Connection Index (MCI). The findings reveal that the markets are long-term integrated, with an average of 32% of price deviations corrected monthly. Among the seven market pairs tested, faster adjustments are observed in markets like Rutshuru-Goma (37%), while slower adjustments are seen in more remote markets such as Moba-Kalemie and Uvira-Bukavu (26% and 27%). These variations in market integration highlight the role of geographic and infrastructural factors. The study recommends targeted interventions, including investments in transport infrastructure, strengthening Market Information Systems (MIS), and supporting local producers, to reduce price volatility and improve food security in the region. Future research could build on this study by using higher-frequency data, such as weekly prices, to capture more detailed market dynamics.