The Extent of the Market and Stages of Agricultural Specialization
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World Bank, Washington, DC
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This paper provides empirical evidence
of nonlinearity in the relationship between crop
specialization in a village economy and the extent of the
market (size of the urban market) relevant for the village.
The results suggest that the portfolio of crops in a village
economy becomes more diversified initially as the extent of
the market increases. However, after the market size reaches
a threshold, the production structure becomes specialized
again. This evidence on the stages of agricultural
diversification is consistent with the stages of
diversification identified in the recent literature for the
economy as a whole and also for the manufacturing sector.
The evidence highlights the importance of improving
farmers' access to markets through investment in
transport infrastructure and removal of barriers to trading.
Palabras clave
ACCESS TO MARKET, ACCESS TO MARKETS, AGRICULTURAL ACTIVITIES, AGRICULTURAL CROPS, AGRICULTURAL PRODUCTION, ALLOCATION, ANIMALS, CAPITA CONSUMPTION, CASH CROPS, CEREAL CROPS, CHECKS, COMMERCIALIZATION, COMMODITY, COMMODITY PRICE, CONSUMER DEMAND, CONSUMPTION EXPENDITURE, CROP, CROP AGRICULTURE, CROP PRODUCTION, CROPLAND, CROPLAND USE, CROPPING, CROPPING PATTERNS, CROPS, CULTIVATED LAND, DATES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DIVERSIFIED CROPPING, DIVISION OF LABOR, DRIVING, DRY SEASON, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMICS, ELASTICITY, EQUIPMENTS, EXPENDITURE, EXTERNALITIES, FARM, FARM HOUSEHOLDS, FARM PRODUCTIVITY, FARMER, FARMERS, FARMING, FERTILIZER, FIXED COSTS, FOOD PRODUCTION, FRUITS, HEAVY MONSOON, HIGHWAYS, HOLDING, HUMAN CAPITAL, IFPRI, INCOME LEVEL, INCOME LEVELS, INFLATION, INSTRUMENT, INSURANCE, INSURANCE MARKETS, INTERNATIONAL BANK, INTERNATIONAL TRADE, LAND USE, LIVING STANDARD, MARKET SIZE, MARKET STRUCTURE, MARKETING, OILSEEDS, PESTICIDE, POLITICAL ECONOMY, POPULATION DENSITY, PORTFOLIO, PRICE RISK, PRICE RISKS, PRICE STABILIZATION, PRICE UNCERTAINTY, PRODUCE, PRODUCTIVITY, PRODUCTIVITY GROWTH, RELEVANT MARKET, REMITTANCE, REMOVAL OF BARRIERS, RETURN, RETURNS, RICE CROP, RICE CROPS, RICE PRODUCTION, RISK SHARING, ROAD, ROAD TYPES, ROADS, RURAL ROADS, SALE, SALES, SETTLEMENT, SINGLE CROP, SOIL QUALITY, SPECIALIZATION, SPEEDS, SPICES, SPREAD, SUBSISTENCE AGRICULTURE, THIN MARKET, TRADING, TRANSPORT, TRANSPORT INFRASTRUCTURE, TRANSPORTATION, TRAVEL SPEEDS, TRAVEL TIME, TRAVEL TIMES, TYPES OF ROAD, TYPES OF ROADS, VEGETABLES, WALKING, WEALTH, WEALTH OF NATIONS