TRANSACTIONS COSTS AND AGRICULTURAL PRODUCTIVITY: IMPLICATIONS OF ISOLATION FOR RURAL POVERTY IN MADAGASCAR Report as inadecuate




TRANSACTIONS COSTS AND AGRICULTURAL PRODUCTIVITY: IMPLICATIONS OF ISOLATION FOR RURAL POVERTY IN MADAGASCAR - Download this document for free, or read online. Document in PDF available to download.

This paper examines the mechanisms that transmit isolation into poverty inMadagascar using household survey data combined with a census of administrativecommunes. Given the importance of agriculture to the rural poor, where nine out of tenpoor persons is engaged in farming, we concentrate on isolation manifesting itself in theform of high transaction costs such as the cost of transporting agricultural commodities tomajor market centers. We find that (a) the incidence of poverty in rural Madagascarincreases with remoteness; (b) yields of major staple crops fall considerably as one getsfarther away from major markets; (c) and the use of agricultural inputs declines withisolation. Simulation results using output from rice production function estimates suggestthat halving travel time per kilometer on major highways (feeder roads) will increaseprimary season rice production by 1.3 (1.0) percent.

Subject(s): Productivity Analysis

Issue Date: 2003

Publication Type: Working or Discussion Paper

PURL Identifier: http://purl.umn.edu/16221

Total Pages: 72

Series Statement: MSSD Discussion Paper

56

Record appears in: CGIAR > International Food Policy Research Institute (IFPRI) > MSSD Discussion Papers





Author: Stifel, David ; Minten, Bart ; Dorosh, Paul A.

Source: http://ageconsearch.umn.edu/record/16221?ln=en



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