This paper analyzes the effect of facilities and infrastructure available at the market place on a farmer's decision to sell at the market using a comprehensive survey of farmers, markets and villages conducted in Tamil Nadu, India in 2005. The econometric estimation shows that the likelihood of sales at the market increases significantly with an improvement in market facilities and a decrease in travel time from the village to the market. The results suggest that wealth reduces a farmer's cost of accessing market facilities more than it increases her/his opportunity cost of leisure. The wealthy farmers are able to capture a disproportionate share of the benefits of facilities available at congested markets. The policy simulation, however, shows that the marginal benefits from an improvement in market facilities will favor poorer farmers in the context of India.
Details
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Author
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Document Date
2007/12/01
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Document Type
Policy Research Working Paper
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Report Number
WPS4455
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2010/07/01
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Disclosure Status
Disclosed
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Doc Name
Where to sell ? market facilities and agricultural marketing
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Keywords
farmer;market access;gross domestic product per capita;transaction cost;increase in quantity;infrastructure and facilities;acres of land;mode of transportation;cultural markets;perfectly competitive market;rural road network;regional trade patterns;division of labor;rural development strategy;development of market;storage capacity;gaining market access;post harvest activity;cost of labor;access to facility;cost of transportation;difference in payoffs;development research group;cost of access;agricultural marketing system;amount of land;average travel time;high opportunity cost;wholesale market;regression results;household head;poor farming;marginal effect;adult male;access market;explanatory variable;theoretical model;transportation cost;market place;household size;market infrastructure;agricultural commercialization;interaction effect;principal component;empirical analysis;wealth effect;Land Ownership;sale decision;indicator variable;policy simulation;
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Citation
Shilpi,Forhad J. Umali-Deininger,Dina
Where to sell market facilities and agricultural marketing (English). Policy Research working paper ; no. WPS 4455 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/443061468041471233/Where-to-sell-market-facilities-and-agricultural-marketing