The Extent of the Market and Stages of Agricultural Specialization
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...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/02/9036338/extent-market-stages-agricultural-specialization http://hdl.handle.net/10986/6577 |
| Summary: | 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. |
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