The Impact of Infrastructure on Agricultural Productivity
Recent literature indicates the significant role played by rural infrastructure in improving agricultural productivity in developing economies. While the availability and quality of rural infrastructure are never substitutes to efficient macroeconomic and agriculture-specific policies and the effective implementation of such policies, inadequate infrastructure can be a significant constraint to growth and productivity. Rural infrastructure, like other public investments, raises agricultural productivity, which in turn induces growth in the rural areas, bringing about higher agricultural wages and improved opportunities for nonfarm labor. The rise in agricultural productivity, which reduces food prices, benefits both urban and rural inhabitants who are net food buyers. Thus, aside from its growth benefits, agricultural productivity has significant poverty-reduction effects. The paper`s overall empirical results indicate a significant link between rural infrastructure and agricultural productivity. Electricity and roads are significant determinants of agricultural productivity. This is consistent with a related finding on the constraints imposed on growth by inadequate infrastructure. Rural roads provide the important connectivity with growing markets adjacent to rural areas; they also lessen input costs and transaction costs of rural producers and consumers. Access to electricity creates various income-earning opportunities for rural households.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: NEDA sa Makati Building, 106 Amorsolo St., Legaspi Village, Makati City,|
Web page: http://www.pids.gov.ph/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Datt, Gaurav & Ravallion, Martin, 1996.
"Why have some Indian states done better than others at reducing rural poverty?,"
Policy Research Working Paper Series
1594, The World Bank.
- Datt, Gaurav & Ravallion, Martin, 1998. "Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February.
- Arsenio M. Balisacan & Ernesto M. Pernia, 2001. "Probing Beneath Cross-National Averages: Poverty, Inequality, and Growth in the Philippines," UP School of Economics Discussion Papers 200111, University of the Philippines School of Economics.
- Llanto, Gilberto M., 2008. "A Review of Build-Operate-Transfer for Infrastructure Development: Some Lessons for Policy Reform," Discussion Papers DP 2008-25, Philippine Institute for Development Studies.
- Gilberto M. Llanto, 2008. "A Review of Build-Operate-Transfer for Infrastructure Development : Some Lessons for Policy Reform," Development Economics Working Papers 22655, East Asian Bureau of Economic Research.
- Douglas Gollin & Stephen Parente & Richard Rogerson, 2002.
"The Role of Agriculture in Development,"
American Economic Review,
American Economic Association, vol. 92(2), pages 160-164, May.
- Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," Center for Development Economics 2002-09, Department of Economics, Williams College.
- Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," Department of Economics Working Papers 2002-09, Department of Economics, Williams College.
- Balisacan, Arsenio M. & Fuwa, Nobuhiko, 2004. "Going beyond Crosscountry Averages: Growth, Inequality and Poverty Reduction in the Philippines," World Development, Elsevier, vol. 32(11), pages 1891-1907, November.
- Hazell, P. B. R. & Roell, Ailsa, 1983. "Rural growth linkages: household expenditure patterns in Malaysia and Nigeria," Research reports 41, International Food Policy Research Institute (IFPRI).
- Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
- Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993.
"How infrastructure and financial institutions affect agricultural output and investment in India,"
Journal of Development Economics,
Elsevier, vol. 41(2), pages 337-366, August.
- Binswanger, Hans P. & Khandker, Shahidur R & Rosenzweig, Mark R., 1989. "How infrastructure and financial institutions affect agricultural output and investment in India," Policy Research Working Paper Series 163, The World Bank.
- Mundlack, Yair & Larson, Donald F. & Butzer, Rita, 2002. "Determinants of agricultural growth in Indonesia, the Philippines, and Thailand," Policy Research Working Paper Series 2803, The World Bank.
- Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
- Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
- Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
- Teruel, Romeo G. & Kuroda, Yoshimi, 2005. "Public infrastructure and productivity growth in Philippine agriculture, 1974-2000," Journal of Asian Economics, Elsevier, vol. 16(3), pages 555-576, June.
- Barbara J. Craig & Philip G. Pardey & Johannes Roseboom, 1997. "International Productivity Patterns: Accounting for Input Quality, Infrastructure, and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1064-1076.
When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2012-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta)
If references are entirely missing, you can add them using this form.