Optimal Locational Choice for Agribusinesses in Madagascar

dc.creatorIimi, Atsushi
dc.date2018-06-28T14:50:07Z
dc.date2018-06-28T14:50:07Z
dc.date2018-06
dc.date.accessioned2026-07-01T00:41:49Z
dc.descriptionThe traditional location theory predicts that firms' locational choice is independent of the output demand. However, firms are often concentrated in large markets. In Africa, agrobusinesses are expected to play an important role to facilitate agricultural growth but are hardly available in rural areas. This paper examines the question of why agribusinesses are not located in local production areas despite the clear benefits expected from close proximity to their inputs. By applying the spatial autocorrelation Tobit model, the paper estimates the impacts of market and farm accessibility on agglomeration of new agrobusinesses in Madagascar. The findings show that market accessibility and agglomeration economies are important for attracting more agrobusinesses. The quality of labor is also an important determinant for their locational choice. The findings are consistent with some models of location theory: firms move away from rural areas where they may still have monopsony power, toward urban areas where productivity is higher.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/378801529588239387/Optimal-locational-choice-for-agrobusinesses-in-Madagascar-an-application-of-spatial-autoregressive-Tobit-regression
dc.identifierhttps://hdl.handle.net/10986/29941
dc.identifier10.1596/29941
dc.identifier.urihttp://hdl.handle.net/123456789/409357
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 8488
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectLOCATION THEORY
dc.subjectGEOSPATIAL ECONOMICS
dc.subjectAGGLOMERATION ECONOMIES
dc.subjectSPATIAL AUTOCORRELATION
dc.subjectCENSORED REGRESSION
dc.subjectAGRIBUSINESS
dc.subjectLABOR MARKET
dc.titleOptimal Locational Choice for Agribusinesses in Madagascar
dc.titleAn Application of Spatial Autoregressive Tobit Regression
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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