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Transportation, State Marketing, and the Taxation of the Agricultural Hinterland

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  • Gersovitz, Mark

Abstract

In raising revenues, governments of poor countries affect farm gate prices for export crops. Because agriculture is dispersed, interventions have spatial effects, leading to an integrated analysis of taxation, marketing, and transportation. Policies to be used singly or together include land, export, and transportation taxes/subsidies, and variants of state marketing, in which only government procures crops. An export tax and a transport subsidy may be optimal. With state marketing, important aspects of buying depots are numbers, locations, spatial pattern of prices paid, and movement of output toward or away from the ultimate market. These policies also affect transport investment strategies. Copyright 1989 by University of Chicago Press.

Suggested Citation

  • Gersovitz, Mark, 1989. "Transportation, State Marketing, and the Taxation of the Agricultural Hinterland," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1113-1137, October.
  • Handle: RePEc:ucp:jpolec:v:97:y:1989:i:5:p:1113-37
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    Cited by:

    1. Fafchamps, Marcel & Gabre-Madhin, Eleni & Minten, Bart, 2005. "Increasing returns and market efficiency in agricultural trade," Journal of Development Economics, Elsevier, vol. 78(2), pages 406-442, December.
    2. Jacoby, Hanan G. & Minten, Bart, 2009. "On measuring the benefits of lower transport costs," Journal of Development Economics, Elsevier, vol. 89(1), pages 28-38, May.
    3. Marie-Francoise Calmette & Maureen Kilkenny, 2012. "Rural roads versus African famines," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(2), pages 373-396, October.
    4. Chau, Nancy & Goto, Hideaki & Kanbur, Ravi, 2009. "Middlemen, Non-Profits, and Poverty," IZA Discussion Papers 4406, Institute for the Study of Labor (IZA).
    5. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-737, July.
    6. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
    7. Minten, Bart & Kyle, Steven, 1999. "The effect of distance and road quality on food collection, marketing margins, and traders' wages: evidence from the former Zaire," Journal of Development Economics, Elsevier, vol. 60(2), pages 467-495, December.
    8. Albers, Heidi J. & Fischer, Carolyn & Sanchirico, James N., 2010. "Invasive species management in a spatially heterogeneous world: Effects of uniform policies," Resource and Energy Economics, Elsevier, vol. 32(4), pages 483-499, November.

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