The extent of the market and stages of agricultural specialization
AbstractThis paper provides empirical evidence of nonlinearity in the relationship between crop specialization in a village economy and the extent of the market (size of the urban market) relevant for the village. The results suggest that the portfolio of crops in a village economy becomes more diversified initially as the extent of the market increases. However, after the market size reaches a threshold, the production structure becomes specialized again. This evidence on the stages of agricultural diversification is consistent with the stages of diversification identified in the recent literature for the economy as a whole and also for the manufacturing sector. The evidence highlights the importance of improving farmers'access to markets through investment in transport infrastructure and removal of barriers to trading.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4534.
Date of creation: 01 Feb 2008
Date of revision:
Transport Economics Policy&Planning; Markets and Market Access; Political Economy; Debt Markets; Crops&Crop Management Systems;
Other versions of this item:
- M. Shahe Emran & Forhad Shilpi, 2012. "The extent of the market and stages of agricultural specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 1125-1153, August.
- M. Shahe Emran & Forhad Shilpi, . "The Extent of the Market and Stages of Agricultural Specialization," Working Papers 2008-11, The George Washington University, Institute for International Economic Policy.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-03-08 (Agricultural Economics)
- NEP-ALL-2008-03-08 (All new papers)
- NEP-DEV-2008-03-08 (Development)
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