Where to Sell? Market Facilities and Agricultural Marketing
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World Bank, Washington, DC
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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.
Palabras clave
ACCESS TO MARKET, ACCESS TO MARKETS, ACCOUNTING, AGRICULTURAL COMMODITIES, AVERAGE TRAVEL TIME, BUS, BUS STATION, BUS STATIONS, COMMERCIAL BANKS, COMMERCIALIZATION, COMMUNITIES, COMPETITIVE MARKET, CONGESTION, CONSUMPTION EXPENDITURE, COST INCREASES, COST OF TRANSPORTATION, CREDIT CONSTRAINT, DEVELOPING COUNTRIES, DISTRICTS, ECONOMIC DEVELOPMENT, EQUIPMENT, EQUIPMENTS, EXPENDITURE, FEMALE, FIXED COSTS, GROSS DOMESTIC PRODUCT, HOUSEHOLDS, INCOME GROWTH, INSTRUMENT, INTERNATIONAL BANK, INTERNATIONAL TRADE, INTERVENTION, INTERVENTIONS, LABOR MARKET, LAND OWNERSHIP, LOCAL GOVERNMENTS, MARKET ACCESS, MARKET EFFICIENCY, MARKET INFRASTRUCTURE, MARKET PLACE, MARKET PRICE, MARKET REFORMS, MARKET TRANSACTION, MARKETING, MISSING MARKETS, OPPORTUNITY COST, OPPORTUNITY COSTS, POLICE, POLICE STATION, POLICE STATIONS, POSITIVE COEFFICIENT, POST OFFICE, POST OFFICES, PRODUCE MARKETING BOARD, PUBLIC SPENDING, PUBLIC TRANSPORTATION, RELEVANT MARKETS, RETAIL, RETURN, RETURNS, ROAD, RURAL AREAS, RURAL DEVELOPMENT, RURAL INFRASTRUCTURE, RURAL ROADS, RURAL TRANSPORTATION, SALE, SALES, SHADOW PRICE, SHOPS, STORAGE CAPACITY, SUB-SAHARAN AFRICA, TOTAL SALES, TRADE LIBERALIZATION, TRADING, TRANSACTION, TRANSACTION COST, TRANSACTION COSTS, TRANSPORT, TRANSPORT COSTS, TRANSPORTATION, TRANSPORTATION COST, TRANSPORTATION COSTS, TRANSPORTATION NETWORK, TRAVEL TIME, TRIPS, TRUCKS, TRUE, URBAN DEVELOPMENT, URBANIZATION, VEHICLES, VILLAGES, WAREHOUSE, WEALTH