Post by Sapphire Capital on Aug 27, 2008 3:07:04 GMT 4
The Extent of the Market and Stages of Agricultural Specialization
M. Shahe Emran
George Washington University - Department of Economics
Forhad Shilpi
World Bank - Development Research Group (DECRG)
February 1, 2008
World Bank Policy Research Working Paper No. 4534
Abstract:
This paper provides empirical evidence of nonlinearity in the relationship between crop specialization in a village economy and the extent of the market (size of the urban market) relevant for the village. The results suggest that the portfolio of crops in a village economy becomes more diversified initially as the extent of the market increases. However, after the market size reaches a threshold, the production structure becomes specialized again. This evidence on the stages of agricultural diversification is consistent with the stages of diversification identified in the recent literature for the economy as a whole and also for the manufacturing sector. The evidence highlights the importance of improving farmers' access to markets through investment in transport infrastructure and removal of barriers to trading.
papers.ssrn.com/sol3/Delivery.cfm/4534.pdf?abstractid=1100349&mirid=1
M. Shahe Emran
George Washington University - Department of Economics
Forhad Shilpi
World Bank - Development Research Group (DECRG)
February 1, 2008
World Bank Policy Research Working Paper No. 4534
Abstract:
This paper provides empirical evidence of nonlinearity in the relationship between crop specialization in a village economy and the extent of the market (size of the urban market) relevant for the village. The results suggest that the portfolio of crops in a village economy becomes more diversified initially as the extent of the market increases. However, after the market size reaches a threshold, the production structure becomes specialized again. This evidence on the stages of agricultural diversification is consistent with the stages of diversification identified in the recent literature for the economy as a whole and also for the manufacturing sector. The evidence highlights the importance of improving farmers' access to markets through investment in transport infrastructure and removal of barriers to trading.
papers.ssrn.com/sol3/Delivery.cfm/4534.pdf?abstractid=1100349&mirid=1