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Port rail connectivity and agricultural production: evidence from a large sample of farmers in Ethiopia

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  • Atsushi Iimi
  • Haileysus Adamtei
  • James Markland
  • Eyasu Tsehaye

Abstract

Agriculture important in Africa, employing a large share of the labor force and earning foreign exchange. Transport connectivity has long been a crucial constraint in the region. In theory, railways have the advantage of shipping bulky freight, such as fertilizer, at low costs. However, in many African countries, railways were in virtual bankruptcy in the 1990s. Using a large sample of data comprised of more than 190,000 households over eight years in Ethiopia, the paper estimates the impacts of rail transport on agricultural production. The paper takes advantage of the historical event that a major rail line connecting the country to Port Djibouti was abandoned during the 2000s. With the fixed effects and instrumental variable techniques combined, an agricultural production function is estimated. It is found that deteriorated transport accessibility to the port had a significantly negative impact. The use of fertilizer particularly decreased with increased transport costs.

Suggested Citation

  • Atsushi Iimi & Haileysus Adamtei & James Markland & Eyasu Tsehaye, 2019. "Port rail connectivity and agricultural production: evidence from a large sample of farmers in Ethiopia," Journal of Applied Economics, Taylor & Francis Journals, vol. 22(1), pages 152-173, January.
    • Handle: RePEc:taf:recsxx:v:22:y:2019:i:1:p:152-173
    DOI: 10.1080/15140326.2019.1591814
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    Cited by:

    1. Atsushi Iimi & Liangzhi You & Ulrike Wood-Sichra, 2020. "Spatial Autocorrelation Panel Regression: Agricultural Production and Transport Connectivity," Networks and Spatial Economics, Springer, vol. 20(2), pages 529-547, June.
    2. Matteo Fiorini & Marco Sanfilippo, 2022. "Roads and Jobs in Ethiopia [When Should You Adjust Standard Errors for Clustering?”]," The World Bank Economic Review, World Bank, vol. 36(4), pages 999-1020.
    3. Atsushi Iimi, 2022. "Agriculture Production and Transport Connectivity: Evidence from Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 58(12), pages 2483-2502, December.
    4. Christopher Cramer & Jonathan Di John & John Sender, 2022. "Classification and Roundabout Production in High‐value Agriculture: A Fresh Approach to Industrialization," Development and Change, International Institute of Social Studies, vol. 53(3), pages 495-524, May.
    5. Yanyan Gao & Xinping Wang, 2023. "Chinese agriculture in the age of high‐speed rail: Effects on agricultural value added and food output," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 387-405, March.
    6. Debebe, Sisay & Bessie, Semeneh & Mehare, Abule & Tazeze, Aemro, 2023. "Private Sector Development in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 32(01), April.
    7. Qiyong Chen & Shiyu Chen & Changfeng Shi & Qinghua Pang & Ang Li, 2021. "Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road," Natural Resources Forum, Blackwell Publishing, vol. 45(4), pages 464-483, November.
    8. Fiorini, Matteo & Sanfilippo, Marco & Sundaram, Asha, 2021. "Trade liberalization, roads and firm productivity," Journal of Development Economics, Elsevier, vol. 153(C).

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