Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar

This paper examines the mechanisms that transmit isolation into poverty in Madagascar using household survey data combined with a census of administrative communes. Given the importance of agriculture to the rural poor, where nine out of ten poor persons is engaged in farming, we concentrate on isol...

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Detalles Bibliográficos
Autores principales: Dorosh, Paul A., Stifel, David, Minten, Bart
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2003
Materias:
Acceso en línea:https://hdl.handle.net/10568/157097
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author Dorosh, Paul A.
Stifel, David
Minten, Bart
author_browse Dorosh, Paul A.
Minten, Bart
Stifel, David
author_facet Dorosh, Paul A.
Stifel, David
Minten, Bart
author_sort Dorosh, Paul A.
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper examines the mechanisms that transmit isolation into poverty in Madagascar using household survey data combined with a census of administrative communes. Given the importance of agriculture to the rural poor, where nine out of ten poor persons is engaged in farming, we concentrate on isolation manifesting itself in the form of high transaction costs such as the cost of transporting agricultural commodities to major market centers. We find that (a) the incidence of poverty in rural Madagascar increases with remoteness; (b) yields of major staple crops fall considerably as one gets farther away from major markets; (c) and the use of agricultural inputs declines with isolation. Simulation results using output from rice production function estimates suggest that halving travel time per kilometer on major highways (feeder roads) will increase primary season rice production by 1.3 (1.0) percent.
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spelling CGSpace1570972025-11-06T06:59:32Z Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar Dorosh, Paul A. Stifel, David Minten, Bart rural poor transport rural areas rice production poverty household surveys censuses This paper examines the mechanisms that transmit isolation into poverty in Madagascar using household survey data combined with a census of administrative communes. Given the importance of agriculture to the rural poor, where nine out of ten poor persons is engaged in farming, we concentrate on isolation manifesting itself in the form of high transaction costs such as the cost of transporting agricultural commodities to major market centers. We find that (a) the incidence of poverty in rural Madagascar increases with remoteness; (b) yields of major staple crops fall considerably as one gets farther away from major markets; (c) and the use of agricultural inputs declines with isolation. Simulation results using output from rice production function estimates suggest that halving travel time per kilometer on major highways (feeder roads) will increase primary season rice production by 1.3 (1.0) percent. 2003 2024-10-24T12:47:19Z 2024-10-24T12:47:19Z Working Paper https://hdl.handle.net/10568/157097 en Open Access application/pdf International Food Policy Research Institute Dorosh, Paul A.; Stifel, David; Minten, Bart. 2003. Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar. MTID Discussion Paper 56. https://hdl.handle.net/10568/157097
spellingShingle rural poor
transport
rural areas
rice
production
poverty
household surveys
censuses
Dorosh, Paul A.
Stifel, David
Minten, Bart
Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar
title Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar
title_full Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar
title_fullStr Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar
title_full_unstemmed Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar
title_short Transaction costs and agricultural productivity: implications of isolation for rural poverty in Madagascar
title_sort transaction costs and agricultural productivity implications of isolation for rural poverty in madagascar
topic rural poor
transport
rural areas
rice
production
poverty
household surveys
censuses
url https://hdl.handle.net/10568/157097
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AT mintenbart transactioncostsandagriculturalproductivityimplicationsofisolationforruralpovertyinmadagascar