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Where to sell ? market facilities and agricultural marketing

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  • Shilpi, Forhad
  • Umali-Deininger, Dina

Abstract

This paper analyzes the effect of facilities and infrastructure available at the market place on a farmer's decision to sell at the market using a comprehensive survey of farmers, markets and villages conducted in Tamil Nadu, India in 2005. The econometric estimation shows that the likelihood of sales at the market increases significantly with an improvement in market facilities and a decrease in travel time from the village to the market. The results suggest that wealth reduces a farmer's cost of accessing market facilities more than it increases her/his opportunity cost of leisure. The wealthy farmers are able to capture a disproportionate share of the benefits of facilities available at congested markets. The policy simulation, however, shows that the marginal benefits from an improvement in market facilities will favor poorer farmers in the context of India.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4455.

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Date of creation: 01 Dec 2007
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Handle: RePEc:wbk:wbrwps:4455

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Keywords: Markets and Market Access; Transport Economics Policy&Planning; Debt Markets; Access to Markets; Housing&Human Habitats;

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References

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  1. The World Bank,, 2005. "India: Re-Energizing the Agricultural Sector to Sustain Growth and Reduce Poverty," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195674323, October.
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  4. Marcel Fafchamps & Forhad Shilpi, 2003. "The spatial division of labour in Nepal," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(6), pages 23-66.
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  7. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262062364, December.
  8. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
  9. Jacoby, Hanan G., 1998. "Access to markets and the benefits of rural roads," Policy Research Working Paper Series 2028, The World Bank.
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  14. Marcel Fafchamps & Ruth Vargas Hill, 2004. "Selling at the farm-gate or travelling to market," CSAE Working Paper Series 2004-30, Centre for the Study of African Economies, University of Oxford.
  15. 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.
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Cited by:
  1. Raghav Gaiha & Nidhi Kaicker & Katsushi S. Imai & Ganesh Thapa, 2012. "Agriculture-Nutrition Pathway in India," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University DP2012-16, Research Institute for Economics & Business Administration, Kobe University.
  2. Imai, Katsushi S. & Gaiha, Raghav & Thapa, Ganesh, 2011. "Supply response to changes in agricultural commodity prices in Asian countries," Journal of Asian Economics, Elsevier, Elsevier, vol. 22(1), pages 61-75, February.
  3. Ganesh Thapa & Raghav Gaiha & Katsushi S. Imai & Varsha S. Kulkarni, 2009. "Soaring Food Prices: A Threat or Opportunity in Asia?," Brooks World Poverty Institute Working Paper Series, BWPI, The University of Manchester 6909, BWPI, The University of Manchester.

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