Agricultural Production and Transport Connectivity : Evidence from Mozambique
Despite the richness of the existing literature, it remains a challenge to find rigorous evidence of the impacts of transport connectivity on agricultural production. The paper aims at contributing to the prolonged debate on the transport-agricultu...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/554861625229930353/Agricultural-Production-and-Transport-Connectivity-Evidence-from-Mozambique http://hdl.handle.net/10986/35915 |
| Summary: | Despite the richness of the existing
literature, it remains a challenge to find rigorous evidence
of the impacts of transport connectivity on agricultural
production. The paper aims at contributing to the prolonged
debate on the transport-agriculture nexus in Africa, by
taking advantage of the unique circumstances in Mozambique
where the government intensively invested in road
infrastructure during a relatively short period of time in
the 2010s. With the highly disaggregated location-specific
fixed-effects and instrumental variable technique used to
control for the endogeneity issue, the paper shows that the
improved road connectivity increased agricultural production
significantly. In particular, access to domestic markets is
found to be important. It is also found that agricultural
production exhibits decreasing returns to scale, heavily
depending on land input. |
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