Are agricultural markets location-optimal? A case study of Gaya District (Bihar)
AbstractThe thesis of efficiency and optimality of Indian agricultural system has several facets that have called for attention of a number of scholars. Some have proved allocative optimality of resource utilization, the others have proved optimality of distribution of gains from agriculture, while still others have come up with the cases of marketing optimality. However, there is hardly any work that studies location optimality of market centers in any region of India. In this paper we examine if the empirically observed market locations are optimal and as a case study take up the agricultural markets located in Gaya district of Bihar. We have used the location-allocation model for optimality analysis. Our findings reveal that existing locations and arrivals of merchandise at the agricultural markets of Gaya are very close to what might have been if they had been located on the principle of optimality. There are minor deviations, of course. However, as the existing markets have developed in an open region, unlike our cost-optimal locations searched out in a closed region, a discount must be made in favour of the existing locations, and we do not have enough reasons and evidence to conclude that the existing markets are sub-optimally located. We conclude, therefore, that market forces automatically establish location optimality and assert that the existing agricultural markets in Gaya district are location-optimal.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3288.
Date of creation: 18 Sep 1985
Date of revision:
Publication status: Published in Hill Geographer 2.IV(1985): pp. 1-8
Agricultural markets; location allocation model; optimality of location;
Find related papers by JEL classification:
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
- R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.