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Where to sell ? market facilities and agricultural marketing

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Author Info
Shilpi, Forhad
Umali-Deininger, Dina

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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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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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  4. D. Gale Johnson, 2000. "Population, Food, and Knowledge," American Economic Review, American Economic Association, vol. 90(1), pages 1-14, March. [Downloadable!] (restricted)
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  8. Badiane, Ousmane & Shively, Gerald E., 1998. "Spatial integration, transport costs, and the response of local prices to policy changes in Ghana," Journal of Development Economics, Elsevier, vol. 56(2), pages 411-431, August. [Downloadable!] (restricted)
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