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Access to a Telephone and Factor Market Participation of Rural Households in Bangladesh

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  • Shyamal K. Chowdhury

Abstract

This paper assesses the impact of access to a telephone on rural households’ factor market opportunities. It answers two questions. First, does the use of a telephone have any impact on rural households’ factor market participation? Second, correcting for market participation, does the use of a telephone have any impact on the type of factor market participation? 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. The empirical findings suggest that access to a telephone has a significant positive impact on factor market participation. The difference in market participation between telephone users and non‐users is around 14%. However, once a household participates in the market, the use of a telephone does not have any impact on specific factor market participation.

Suggested Citation

  • Shyamal K. Chowdhury, 2006. "Access to a Telephone and Factor Market Participation of Rural Households in Bangladesh," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 563-576, September.
    • Handle: RePEc:bla:jageco:v:57:y:2006:i:3:p:563-576
    DOI: 10.1111/j.1477-9552.2006.00065.x
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    1. Torero, Maximo & von Braun, Joachim (ed.), 2006. "Information and communication technologies for development and poverty reduction: The potential of telecommunications," IFPRI books, International Food Policy Research Institute (IFPRI), number 0-8018-8041-6.
    2. Torero, Maximo, 2000. "The Access and Welfare Impacts of Telecommunications Technology in Peru," Discussion Papers 281235, University of Bonn, Center for Development Research (ZEF).
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    Cited by:

    1. Kyeong Ho Lee & Marc F. Bellemare, 2013. "Look Who's Talking: The Impacts of the Intrahousehold Allocation of Mobile Phones on Agricultural Prices," Journal of Development Studies, Taylor & Francis Journals, vol. 49(5), pages 624-640, May.
    2. Krone Madlen & Dannenberg Peter, 2018. "Analysing the effects of information and communication technologies (ICTs) on the integration of East African farmers in a value chain context," ZFW – Advances in Economic Geography, De Gruyter, vol. 62(1), pages 65-81, March.
    3. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    4. Akhter Ali & Awudu Abdulai & Dil Bahadur Rahut, 2017. "Farmers' Access to Markets: The Case of Cotton in Pakistan," Asian Economic Journal, East Asian Economic Association, vol. 31(2), pages 211-232, June.

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