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Access To Information And Factor Market Participation: Adjustments Of Land And Labour Margins Of Agricultural Households In Bangladesh

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  • Chowdhury, Shyamal K.

Abstract

This paper assesses the impact of access to information on farm household's factor market participation. The paper tries to answer two questions. First, does use of telephone have any impact on farm household's factor market participation decision? Second, correcting for market participation, does use of telephone have any impact on the type of factor adjustment decision? For the first question, the paper uses a bivariate probit to correct for omitted variable bias and for the second question, the paper uses a two stage probit. Empirical findings of this paper suggest that access to information in the form of use of telephone has significant positive impact on factor market participation. The difference in market participation between telephone users and nonusers is around 14 percent. However, once a household participate in the market, the use of telephone does not have any impact on specific factor market participation.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25861.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25861

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Keywords: Consumer/Household Economics; Marketing;

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  1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  2. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
  3. Stiglitz, Joseph E., 1988. "Economic organization, information, and development," Handbook of Development Economics, Elsevier, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 5, pages 93-160 Elsevier.
  4. Joseph E. Stiglitz, 1973. "Incentives and Risk-Sharing in Sharecropping," Cowles Foundation Discussion Papers 353, Cowles Foundation for Research in Economics, Yale University.
  5. Strauss, John, 1984. "Joint determination of food consumption and production in rural Sierra Leone : Estimates of a household-firm model," Journal of Development Economics, Elsevier, vol. 14(1), pages 77-103.
  6. Leff, Nathaniel H, 1984. "Externalities, Information Costs, and Social Benefit-Cost Analysis for Economic Development: An Example from Telecommunications," Economic Development and Cultural Change, University of Chicago Press, vol. 32(2), pages 255-76, January.
  7. Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1992. "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1965-2018, December.
  8. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(409), pages 1400-417, November.
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