Crop Production, Transport Infrastructure, and Agrobusiness Nexus: Evidence from Madagascar

22 Pages Posted: 28 Aug 2018

See all articles by Atsushi Iimi

Atsushi Iimi

International Monetary Fund (IMF); World Bank

Liangzhi You

International Food Policy Research Institute (IFPRI)

Ulrike Wood-Sichra

International Food Policy Research Institute (IFPRI)

Date Written: June 21, 2018

Abstract

The literature suggests a wide range of impacts of improved transport connectivity on agricultural growth. Still, the infrastructure-growth nexus remains somewhat mysterious, particularly in the African context, because many rural farmers do not have their own transport means. Using data from Madagascar, the paper reexamines the important roles of agrobusinesses. By applying the spatial autoregressive model, it is shown that proximity to input-oriented agrobusinesses, such as input dealers and equipment suppliers, is particularly important to increase rice production. Fertilizer and irrigation use is also found important, indicating the needs for intensification in rice production. Market accessibility is always found as a significant determinant: transport infrastructure connecting farmers and markets, especially the capital city, Antananarivo, is therefore important to develop and maintain.

Keywords: Transport Services, Crops and Crop Management Systems, Climate Change and Agriculture, Inequality, Food Security

Suggested Citation

Iimi, Atsushi and You, Liangzhi and Wood-Sichra, Ulrike, Crop Production, Transport Infrastructure, and Agrobusiness Nexus: Evidence from Madagascar (June 21, 2018). World Bank Policy Research Working Paper No. 8486. Available at SSRN: https://ssrn.com/abstract=3238324

Atsushi Iimi (Contact Author)

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Liangzhi You

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Ulrike Wood-Sichra

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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