The extent of the market and stages of agricultural specialization, Vol. 1 of 1

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The extent of the market and stages of agricultural specialization

Author:	Emran, M. Shahe; Shilpi, Forhad;	Collection Title:	Policy Research working paper ; no. WPS 4534
Country:	World;	Date Stored:	2008/02/26
Document Date:	2008/02/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	The World Region
Report Number:	WPS4534	SubTopics:	Transport Economics Policy & Planning; Political Economy; Markets and Market Access; Crops and Crop Management Systems; Debt Markets
Volume No:	1 of 1

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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