Where to Sell? Market Facilities and Agricultural Marketing

45 Pages Posted: 20 Apr 2016

See all articles by Forhad Shilpi

Forhad Shilpi

World Bank - Development Research Group (DECRG)

Dina Umali-Deininger

affiliation not provided to SSRN

Date Written: December 1, 2007

Abstract

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.

Keywords: Markets and Market Access, Transport Economics Policy & Planning, Debt Markets, Access to Markets, Housing & Human Habitats

Suggested Citation

Shilpi, Forhad and Umali-Deininger, Dina, Where to Sell? Market Facilities and Agricultural Marketing (December 1, 2007). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2007. Available at SSRN: https://ssrn.com/abstract=1077737

Forhad Shilpi (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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Dina Umali-Deininger

affiliation not provided to SSRN

No Address Available

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