Information, informality and trade: evidence from small traders in East Africa

Last registered on February 12, 2020

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Pre-Trial

Trial Information

General Information

Title

Information, bargaining, corruption and trade: evidence from small traders in East Africa

RCT ID

AEARCTR-0005392

Initial registration date

February 12, 2020

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published

February 12, 2020, 1:45 PM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country

Kenya

Region

Primary Investigator

Name

Eleanor Wiseman

Affiliation

U.C. Berkeley

Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status

In development

Start date

2020-02-24

End date

2021-12-31

Keywords

Agriculture, Firms & Productivity, Gender, Governance

Additional Keywords

JEL code(s)

Secondary IDs

Abstract

This research project focuses on trade barriers for small-scale cross-border traders. These traders face multiple intermediaries in the process of crossing the border, increasing their -already substantial- trade costs. Traders do not always know the official rate of each intermediary and may be taken advantage of. Indeed, an asymmetry of information between traders and intermediaries or border agents about prices and rates may play a significant role in increasing trade costs, fueling corruption and affect traders' business. Through a RCT in East-Africa, I test whether giving information to traders about market prices, border prices and taxes can affect bargaining, lower the cost at the border and affect small-scale traders’ choices of trade route. Such reductions in trade costs may increase and/or formalize trade, increase traders’ profit and have spillover effects along the value chain.

External Link(s)

Registration Citation

Citation

Wiseman , Eleanor. 2020. "Information, bargaining, corruption and trade: evidence from small traders in East Africa." AEA RCT Registry. February 12. https://doi.org/10.1257/rct.5392-1.0

Sponsors & Partners

Experimental Details

Interventions

Intervention(s)

Intervention Start Date

2020-03-23

Intervention End Date

2020-04-17

Primary Outcomes

Primary Outcomes (end points)

Trade costs: transport costs, tariffs/taxes, bribes
Trade outcomes: imports/exports quantity, type of products traded, traders’ choice of formal versus informal border crossing
Sourcing/Selling outcomes and outcomes on value chain: supplier and supplier market choice, customer/selling market choice, traders' frequency of purchase from suppliers (could be farmers or traders), the number of suppliers purchased from, supplier's sales, supplier's prices
Market prices

Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)

Secondary Outcomes (explanation)

Experimental Design

A listing of traders will be carried out in markets located close to Busia (Uganda-Kenya crossing) and Isibania (Tanzania-Kenya crossing). A random sample of traders will be selected based on pre-selected stratas. A baseline will be administered to the sample of selected traders and their main supplier. A random sample of traders (treatment group) will receive access to a platform where they can access market prices, exchange rate information and information about tax rates and border crossing procedures. The control group will not receive access to this platform. High frequency data will be collected on trading behaviors on both treatment and control groups throughout the study. Finally, an endline study will be administered both on traders and main suppliers.

Experimental Design Details

Randomization Method

Randomization done by a computer

Randomization Unit

Trader level randomization, clustered at market (and possibly type of goods) level to account for spillovers

Was the treatment clustered?

Yes

Experiment Characteristics

Sample size: planned number of clusters

40 markets (located close to two borders) and 4-6 types of goods

Sample size: planned number of observations

1000 traders, 1000-2000 suppliers (farmers or traders)

Sample size (or number of clusters) by treatment arms

500 treatment traders, 500 control traders

Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

Supporting Documents and Materials

IRB

Institutional Review Boards (IRBs)

IRB Name

Maseno University Ethics Review Committee

IRB Approval Date

2019-11-21

IRB Approval Number

MSU/DRPI/MUERC/00776/19

IRB Name

U.C. Berkeley CPHS

IRB Approval Date

2019-09-16

IRB Approval Number

2019-08-12469

Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?

Data Collection Complete

Data Publication

Is public data available?

Program Files

Reports, Papers & Other Materials