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Agriculture, Roads, and Economic Development in Uganda

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  • Douglas Gollin
  • Richard Rogerson

Abstract

A large fraction of Uganda's population continues to earn a living from quasi-subsistence agriculture. This paper uses a static general equilibrium model to explore the relationships between high transportation costs, low productivity, and the size of the quasi-subsistence sector. We parameterize the model to replicate some key features of the Ugandan data, and we then perform a series of quantitative experiments. Our results suggest that the population in quasi-subsistence agriculture is highly sensitive both to agricultural productivity levels and to transportation costs. The model also suggests positive complementarities between improvements in agricultural productivity and transportation.

Suggested Citation

  • Douglas Gollin & Richard Rogerson, 2010. "Agriculture, Roads, and Economic Development in Uganda," NBER Working Papers 15863, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:15863
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    References listed on IDEAS

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    1. Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2007. "The food problem and the evolution of international income levels," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1230-1255, May.
    2. Shenggen Fan & Peter Hazell, 2001. "Returns to Public Investments in the Less-Favored Areas of India and China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1217-1222.
    3. Dekle, Robert & Vandenbroucke, Guillaume, 2012. "A quantitative analysis of China's structural transformation," Journal of Economic Dynamics and Control, Elsevier, vol. 36(1), pages 119-135.
    4. Berthold Herrendorf & Arilton Teixeira, 2011. "Barriers To Entry And Development," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(2), pages 573-602, May.
    5. Fan, Shenggen & Chan-Kang, Connie, 2004. "Road development, economic growth, and poverty reduction in China," DSGD discussion papers 12, International Food Policy Research Institute (IFPRI).
    6. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, vol. 92(4), pages 1205-1217, September.
    7. Eswaran, Mukesh & Kotwal, Ashok, 1993. "A theory of real wage growth in LDCs," Journal of Development Economics, Elsevier, vol. 42(2), pages 243-269, December.
    8. Echevarria, Cristina, 1997. "Changes in Sectoral Composition Associated with Economic Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-452, May.
    9. Goodfriend, Marvin & McDermott, John, 1998. "Industrial Development and the Convergence Question," American Economic Review, American Economic Association, vol. 88(5), pages 1277-1289, December.
    10. Gachassin, Marie & Najman, Boris & Raballand, Gael, 2010. "The impact of roads on poverty reduction : a case study of Cameroon," Policy Research Working Paper Series 5209, The World Bank.
    11. Berthold Herrendorf & James A. Schmitz & Arilton Teixeira, 2006. "How Important was the 19th Century Transportation Revolution for U.S. Development?," 2006 Meeting Papers 831, Society for Economic Dynamics.
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    Citations

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    Cited by:

    1. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941 Elsevier.
    2. Lodovico Muratori, 2016. "Price Gap along the Ugandan Coffee Value Chain," Working Papers 1/16, Sapienza University of Rome, DISS.
    3. Qin, Yu & Zhang, Xiaobo, 2016. "The Road to Specialization in Agricultural Production: Evidence from Rural China," World Development, Elsevier, vol. 77(C), pages 1-16.
    4. Tombe, Trevor, 2011. "Structural change and regional convergence: the case of declining transport costs," MPRA Paper 34053, University Library of Munich, Germany.
    5. repec:fpr:ifpric:9780896292833_11 is not listed on IDEAS
    6. Bah, El-hadj & Fang, Lei, 2015. "Impact of the business environment on output and productivity in Africa," Journal of Development Economics, Elsevier, vol. 114(C), pages 159-171.
    7. Minten, Bart & Assefa, Thomas & Hirvonen, Kalle, 2017. "Can Agricultural Traders be Trusted? Evidence from Coffee in Ethiopia," World Development, Elsevier, vol. 90(C), pages 77-88.
    8. Stifel, David & Minten, Bart, 2017. "Market Access, Well-being, and Nutrition: Evidence from Ethiopia," World Development, Elsevier, vol. 90(C), pages 229-241.
    9. Adam, Christopher & Bevan, David & Gollin, Douglas, 2018. "Rural–Urban Linkages, Public Investment and Transport Costs: The Case of Tanzania," World Development, Elsevier, vol. 109(C), pages 497-510.
    10. Trevor Tombe, 2012. "The Missing Food Problem," Working Papers tt0060, Wilfrid Laurier University, Department of Economics, revised 2012.
    11. Gollin, Douglas & Rogerson, Richard, 2014. "Productivity, transport costs and subsistence agriculture," Journal of Development Economics, Elsevier, vol. 107(C), pages 38-48.
    12. Girum Abebe & Stefano Caria & Marcel Fafchamps & Paolo Falco & Simon Franklin & Simon Quinn, 2016. "Curse of Anonymity or Tyranny of Distance? The Impacts of Job-Search Support in Urban Ethiopia," NBER Working Papers 22409, National Bureau of Economic Research, Inc.
    13. El-Hadj Bah & Lei Fang, 2015. "Working Paper - 219 - Impact of the business Environment on Output and Productivity in Africa," Working Paper Series 2159, African Development Bank.
    14. Pina, Gilson M. G., 2013. "Mudança estrutural e a relação entre os setores em Cabo Verde
      [Structural change and the sectoral linkage in Cape Verde]
      ," MPRA Paper 46015, University Library of Munich, Germany.
    15. Trevor Tombe, 2010. "The Missing Food Problem: How Low Agricultural Imports Contribute to International Income and Productivity Differences," Working Papers tecipa-416, University of Toronto, Department of Economics.
    16. Qin, Yu & Zhang, Xiaobo, 2012. "Road to Specialization in Agricultural Production: Evidence from Rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126455, International Association of Agricultural Economists.
    17. Fabio Monteforte, 2015. "Structural Transformation, the Push-Pull Hypothesis and the Labour Market," Bristol Economics Discussion Papers 15/654, Department of Economics, University of Bristol, UK, revised 01 Dec 2017.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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