Agricultural Technology Choice and Transport

This paper addresses an old and recurring theme in development economics: the slow adoption of new technologies by farmers in many developing countries. The paper explores a somewhat novel link to explain this puzzle -- the link between market acce...

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Main Authors:	Ali, Rubaba, Barra, A. Federico, Berg, Claudia N., Damania, Richard, Nash, John D., Russ, Jason
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	LIVING STANDARDS TRADITIONAL TECHNOLOGY PURCHASE PRICE COSTS OF TRAVEL PRICE OF FUEL PRODUCTION INCOME VEHICLE SPEED TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS FREIGHT TRANSPORT ELASTICITY OF DEMAND INFORMATION LIQUIDITY ELASTICITY POLITICAL ECONOMY WELFARE INCENTIVES DIMINISHING RETURNS TRAVEL SPEED VARIABLES MODELS SYSTEM IMPACT OF TRANSPORT COSTS HIGHWAY SYSTEM TAX INPUTS CITIES DECISIONS GROSS VEHICLE WEIGHT RETURNS TO SCALE WEALTH CODES AGRICULTURAL OUTPUT TRANSPORTATION INFRASTRUCTURE TRENDS ROAD TYPE LITERACY PRICE INCENTIVES INCREASING RETURNS TO SCALE KNOWLEDGE TRAVEL COSTS DEVELOPMENT NEW TECHNOLOGIES CHOICE VEHICLE DATA INFLUENCE TOTAL FACTOR PRODUCTIVITY ROAD DIGITAL COSTS TRANSPORTATION NETWORK DEVELOPMENT ECONOMICS ROAD NETWORK TRANSPORT IMPACT OF TRANSPORT FIXED COSTS PRODUCTIVITY EXTERNALITIES INDUSTRIALIZATION FAILURES INCREASING RETURNS MARKETS CONNECTIVITY COSTS PER VEHICLE LEARNING PIXELS CULTURAL CHANGE RESEARCH TRAVEL TIMES UTILITY ROUTE ROAD QUALITY INFRASTRUCTURE TECHNOLOGY PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE RADAR TRAVEL TRANSPORTATION WAGES POLICIES ECONOMIC OUTCOMES BASIC PARTICIPATION VALUE PRODUCTION FUNCTIONS ELASTICITIES CREDIT ALTERNATIVE TECHNOLOGIES ACCESSIBILITY SYSTEMS RURAL INFRASTRUCTURE UTILITY FUNCTION AGRICULTURE DECISION MAKING MEASUREMENT UNDERDEVELOPMENT ENDOGENOUS VARIABLES POLICY PRODUCTION FUNCTION ROADS FUNCTIONAL FORMS WALKING HIGHWAY TRADE RAILROAD VEHICLE COST GOODS THEORY TRANSPORTATION COST INVESTMENT COMPARATIVE ADVANTAGE TRANSACTIONS COSTS FUEL COMPETITIVE MARKETS REVENUE INVESTMENTS IT NEW TECHNOLOGY AT PEDESTRIANS ECONOMIC GEOGRAPHY TRANSPORT COSTS TECHNOLOGIES OUTCOMES TRAVEL TIME FUEL COST FREIGHT ATTRIBUTES INNOVATIONS ENGINEERS DEVELOPMENT POLICY
Online Access:	http://documents.worldbank.org/curated/en/2015/05/24498115/agricultural-technology-choice-transport http://hdl.handle.net/10986/22003

id	okr-10986-22003
recordtype	oai_dc
spelling	okr-10986-220032021-04-23T14:04:06Z Agricultural Technology Choice and Transport Ali, Rubaba Barra, A. Federico Berg, Claudia N. Damania, Richard Nash, John D. Russ, Jason LIVING STANDARDS TRADITIONAL TECHNOLOGY PURCHASE PRICE COSTS OF TRAVEL PRICE OF FUEL PRODUCTION INCOME VEHICLE SPEED TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS FREIGHT TRANSPORT ELASTICITY OF DEMAND INFORMATION LIQUIDITY ELASTICITY POLITICAL ECONOMY WELFARE INCENTIVES DIMINISHING RETURNS TRAVEL SPEED VARIABLES MODELS SYSTEM IMPACT OF TRANSPORT COSTS HIGHWAY SYSTEM TAX INPUTS CITIES DECISIONS GROSS VEHICLE WEIGHT RETURNS TO SCALE WEALTH CODES AGRICULTURAL OUTPUT TRANSPORTATION INFRASTRUCTURE TRENDS ROAD TYPE LITERACY PRICE INCENTIVES INCREASING RETURNS TO SCALE KNOWLEDGE TRAVEL COSTS DEVELOPMENT NEW TECHNOLOGIES CHOICE VEHICLE DATA INFLUENCE TOTAL FACTOR PRODUCTIVITY ROAD DIGITAL COSTS TRANSPORTATION NETWORK DEVELOPMENT ECONOMICS ROAD NETWORK TRANSPORT IMPACT OF TRANSPORT FIXED COSTS PRODUCTIVITY EXTERNALITIES INDUSTRIALIZATION FAILURES INCREASING RETURNS MARKETS CONNECTIVITY COSTS PER VEHICLE LEARNING PIXELS CULTURAL CHANGE RESEARCH TRAVEL TIMES UTILITY ROUTE ROAD QUALITY INFRASTRUCTURE TECHNOLOGY PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE RADAR TRAVEL TRANSPORTATION WAGES POLICIES ECONOMIC OUTCOMES BASIC PARTICIPATION VALUE PRODUCTION FUNCTIONS ELASTICITIES CREDIT ALTERNATIVE TECHNOLOGIES ACCESSIBILITY SYSTEMS RURAL INFRASTRUCTURE UTILITY FUNCTION AGRICULTURE DECISION MAKING MEASUREMENT UNDERDEVELOPMENT ENDOGENOUS VARIABLES POLICY PRODUCTION FUNCTION ROADS FUNCTIONAL FORMS WALKING HIGHWAY TRADE RAILROAD VEHICLE COST GOODS THEORY TRANSPORTATION COST INVESTMENT COMPARATIVE ADVANTAGE TRANSACTIONS COSTS FUEL COMPETITIVE MARKETS REVENUE INVESTMENTS IT NEW TECHNOLOGY AT PEDESTRIANS ECONOMIC GEOGRAPHY TRANSPORT COSTS TECHNOLOGIES OUTCOMES TRAVEL TIME FUEL COST FREIGHT ATTRIBUTES INNOVATIONS ENGINEERS DEVELOPMENT POLICY This paper addresses an old and recurring theme in development economics: the slow adoption of new technologies by farmers in many developing countries. The paper explores a somewhat novel link to explain this puzzle -- the link between market access and the incentives to adopt a new technology when there are non-convexities. The paper develops a theoretical model to guide the empirical analysis, which uses spatially disaggregated agricultural production data from Spatial Production Allocation Model and Living Standards Measurement Study survey data for Nigeria. The model is used to estimate the impact of transport costs on crop production, the adoption of modern technologies, and the differential impact on returns of modern versus traditional farmers. To overcome the limitation of data availability on travel costs for much of Africa, road survey data are combined with geographic information road network data to generate the most thorough and accurate road network available. With these data and the Highway Development Management Model, minimum travel costs from each location to the market are computed. Consistent with the theory, analysis finds that transportation costs are critical in determining technology choices, with a greater responsiveness among farmers who adopt modern technologies, and at times a perverse (negative) response to lower transport costs among those who employ more traditional techniques. In sum, the paper presents compelling evidence that the constraints to the adoption of modern technologies and access to markets are interconnected, and so should be targeted jointly. 2015-06-02T21:21:37Z 2015-06-02T21:21:37Z 2015-05 Working Paper http://documents.worldbank.org/curated/en/2015/05/24498115/agricultural-technology-choice-transport http://hdl.handle.net/10986/22003 English en_US Policy Research Working Paper;No. 7272 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Nigeria
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	LIVING STANDARDS TRADITIONAL TECHNOLOGY PURCHASE PRICE COSTS OF TRAVEL PRICE OF FUEL PRODUCTION INCOME VEHICLE SPEED TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS FREIGHT TRANSPORT ELASTICITY OF DEMAND INFORMATION LIQUIDITY ELASTICITY POLITICAL ECONOMY WELFARE INCENTIVES DIMINISHING RETURNS TRAVEL SPEED VARIABLES MODELS SYSTEM IMPACT OF TRANSPORT COSTS HIGHWAY SYSTEM TAX INPUTS CITIES DECISIONS GROSS VEHICLE WEIGHT RETURNS TO SCALE WEALTH CODES AGRICULTURAL OUTPUT TRANSPORTATION INFRASTRUCTURE TRENDS ROAD TYPE LITERACY PRICE INCENTIVES INCREASING RETURNS TO SCALE KNOWLEDGE TRAVEL COSTS DEVELOPMENT NEW TECHNOLOGIES CHOICE VEHICLE DATA INFLUENCE TOTAL FACTOR PRODUCTIVITY ROAD DIGITAL COSTS TRANSPORTATION NETWORK DEVELOPMENT ECONOMICS ROAD NETWORK TRANSPORT IMPACT OF TRANSPORT FIXED COSTS PRODUCTIVITY EXTERNALITIES INDUSTRIALIZATION FAILURES INCREASING RETURNS MARKETS CONNECTIVITY COSTS PER VEHICLE LEARNING PIXELS CULTURAL CHANGE RESEARCH TRAVEL TIMES UTILITY ROUTE ROAD QUALITY INFRASTRUCTURE TECHNOLOGY PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE RADAR TRAVEL TRANSPORTATION WAGES POLICIES ECONOMIC OUTCOMES BASIC PARTICIPATION VALUE PRODUCTION FUNCTIONS ELASTICITIES CREDIT ALTERNATIVE TECHNOLOGIES ACCESSIBILITY SYSTEMS RURAL INFRASTRUCTURE UTILITY FUNCTION AGRICULTURE DECISION MAKING MEASUREMENT UNDERDEVELOPMENT ENDOGENOUS VARIABLES POLICY PRODUCTION FUNCTION ROADS FUNCTIONAL FORMS WALKING HIGHWAY TRADE RAILROAD VEHICLE COST GOODS THEORY TRANSPORTATION COST INVESTMENT COMPARATIVE ADVANTAGE TRANSACTIONS COSTS FUEL COMPETITIVE MARKETS REVENUE INVESTMENTS IT NEW TECHNOLOGY AT PEDESTRIANS ECONOMIC GEOGRAPHY TRANSPORT COSTS TECHNOLOGIES OUTCOMES TRAVEL TIME FUEL COST FREIGHT ATTRIBUTES INNOVATIONS ENGINEERS DEVELOPMENT POLICY
spellingShingle	LIVING STANDARDS TRADITIONAL TECHNOLOGY PURCHASE PRICE COSTS OF TRAVEL PRICE OF FUEL PRODUCTION INCOME VEHICLE SPEED TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS FREIGHT TRANSPORT ELASTICITY OF DEMAND INFORMATION LIQUIDITY ELASTICITY POLITICAL ECONOMY WELFARE INCENTIVES DIMINISHING RETURNS TRAVEL SPEED VARIABLES MODELS SYSTEM IMPACT OF TRANSPORT COSTS HIGHWAY SYSTEM TAX INPUTS CITIES DECISIONS GROSS VEHICLE WEIGHT RETURNS TO SCALE WEALTH CODES AGRICULTURAL OUTPUT TRANSPORTATION INFRASTRUCTURE TRENDS ROAD TYPE LITERACY PRICE INCENTIVES INCREASING RETURNS TO SCALE KNOWLEDGE TRAVEL COSTS DEVELOPMENT NEW TECHNOLOGIES CHOICE VEHICLE DATA INFLUENCE TOTAL FACTOR PRODUCTIVITY ROAD DIGITAL COSTS TRANSPORTATION NETWORK DEVELOPMENT ECONOMICS ROAD NETWORK TRANSPORT IMPACT OF TRANSPORT FIXED COSTS PRODUCTIVITY EXTERNALITIES INDUSTRIALIZATION FAILURES INCREASING RETURNS MARKETS CONNECTIVITY COSTS PER VEHICLE LEARNING PIXELS CULTURAL CHANGE RESEARCH TRAVEL TIMES UTILITY ROUTE ROAD QUALITY INFRASTRUCTURE TECHNOLOGY PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE RADAR TRAVEL TRANSPORTATION WAGES POLICIES ECONOMIC OUTCOMES BASIC PARTICIPATION VALUE PRODUCTION FUNCTIONS ELASTICITIES CREDIT ALTERNATIVE TECHNOLOGIES ACCESSIBILITY SYSTEMS RURAL INFRASTRUCTURE UTILITY FUNCTION AGRICULTURE DECISION MAKING MEASUREMENT UNDERDEVELOPMENT ENDOGENOUS VARIABLES POLICY PRODUCTION FUNCTION ROADS FUNCTIONAL FORMS WALKING HIGHWAY TRADE RAILROAD VEHICLE COST GOODS THEORY TRANSPORTATION COST INVESTMENT COMPARATIVE ADVANTAGE TRANSACTIONS COSTS FUEL COMPETITIVE MARKETS REVENUE INVESTMENTS IT NEW TECHNOLOGY AT PEDESTRIANS ECONOMIC GEOGRAPHY TRANSPORT COSTS TECHNOLOGIES OUTCOMES TRAVEL TIME FUEL COST FREIGHT ATTRIBUTES INNOVATIONS ENGINEERS DEVELOPMENT POLICY Ali, Rubaba Barra, A. Federico Berg, Claudia N. Damania, Richard Nash, John D. Russ, Jason Agricultural Technology Choice and Transport
geographic_facet	Africa Nigeria
relation	Policy Research Working Paper;No. 7272
description	This paper addresses an old and recurring theme in development economics: the slow adoption of new technologies by farmers in many developing countries. The paper explores a somewhat novel link to explain this puzzle -- the link between market access and the incentives to adopt a new technology when there are non-convexities. The paper develops a theoretical model to guide the empirical analysis, which uses spatially disaggregated agricultural production data from Spatial Production Allocation Model and Living Standards Measurement Study survey data for Nigeria. The model is used to estimate the impact of transport costs on crop production, the adoption of modern technologies, and the differential impact on returns of modern versus traditional farmers. To overcome the limitation of data availability on travel costs for much of Africa, road survey data are combined with geographic information road network data to generate the most thorough and accurate road network available. With these data and the Highway Development Management Model, minimum travel costs from each location to the market are computed. Consistent with the theory, analysis finds that transportation costs are critical in determining technology choices, with a greater responsiveness among farmers who adopt modern technologies, and at times a perverse (negative) response to lower transport costs among those who employ more traditional techniques. In sum, the paper presents compelling evidence that the constraints to the adoption of modern technologies and access to markets are interconnected, and so should be targeted jointly.
format	Working Paper
author	Ali, Rubaba Barra, A. Federico Berg, Claudia N. Damania, Richard Nash, John D. Russ, Jason
author_facet	Ali, Rubaba Barra, A. Federico Berg, Claudia N. Damania, Richard Nash, John D. Russ, Jason
author_sort	Ali, Rubaba
title	Agricultural Technology Choice and Transport
title_short	Agricultural Technology Choice and Transport
title_full	Agricultural Technology Choice and Transport
title_fullStr	Agricultural Technology Choice and Transport
title_full_unstemmed	Agricultural Technology Choice and Transport
title_sort	agricultural technology choice and transport
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/05/24498115/agricultural-technology-choice-transport http://hdl.handle.net/10986/22003
_version_	1764449885379100672

Agricultural Technology Choice and Transport

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