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Spatial autocorrelation panel regression : agricultural production and transport connectivity

Author

Listed:
  • Iimi,Atsushi
  • You,Liangzhi
  • Wood-Sichra,Ulrike
  • Iimi,Atsushi
  • You,Liangzhi
  • Wood-Sichra,Ulrike

Abstract

Spatial analysis in economics is becoming increasingly important as more spatial data and innovative data mining technologies are developed. Even in Africa, where data often crucially lack quality analysis, a variety of spatial data have recently been developed, such as highly disaggregated crop production maps. Taking advantage of the historical event that rail operations were ceased in Ethiopia, this paper examines the relationship between agricultural production and transport connectivity, especially port accessibility, which is mainly characterized by rail transport. To deal with endogeneity of infrastructure placement and autocorrelation in spatial data, the spatial autocorrelation panel regression model is applied. It is found that agricultural production decreases with transport costs to the port: the elasticity is estimated at -0.094 to -0.143, depending on model specification. The estimated autocorrelation parameters also support the finding that although farmers in close locations share a certain common production pattern, external shocks, such as drought and flood, have spillover effects over neighboring areas.

Suggested Citation

  • Iimi,Atsushi & You,Liangzhi & Wood-Sichra,Ulrike & Iimi,Atsushi & You,Liangzhi & Wood-Sichra,Ulrike, 2017. "Spatial autocorrelation panel regression : agricultural production and transport connectivity," Policy Research Working Paper Series 8089, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8089
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    Cited by:

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    2. Huang, Danyang & Hu, Wei & Jing, Bingyi & Zhang, Bo, 2023. "Grouped spatial autoregressive model," Computational Statistics & Data Analysis, Elsevier, vol. 178(C).
    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.

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    Keywords

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    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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