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Port rail connectivity and agricultural production : evidence from a large sample of farmers in Ethiopia

Author

Listed:
  • Iimi,Atsushi
  • Adamtei,Haileyesus
  • Markland,James
  • Tsehaye,Eyasu
Abstract
Agriculture remains an important economic sector in Africa, employing a large share of the labor force and earning foreign exchange. Among others, transport connectivity has long been a crucial constraint in Africa. In theory, railways have a particularly important role to play in shipping freight and passengers at low cost. However, most African railways were in virtual bankruptcy by the 1990s. Using a large sample of data comprised of more than 190,000 households over eight years in Ethiopia, the paper estimates the impacts of rail transport on agricultural production. Methodologically, the paper takes advantage of the historical event that a major rail line connecting the country to the regional hub, the Port of Djibouti, was abandoned in the 2000s. With spatially highly disaggregated fixed effects and instrumental variables incorporated, an agricultural production function is estimated. The elasticity with respect to port connectivity is estimated at 0.276. The use of fertilizer is also found to increase with transport cost reduction, supporting the fact that a large amount of fertilizer is imported to Ethiopia.

Suggested Citation

  • Iimi,Atsushi & Adamtei,Haileyesus & Markland,James & Tsehaye,Eyasu, 2017. "Port rail connectivity and agricultural production : evidence from a large sample of farmers in Ethiopia," Policy Research Working Paper Series 8088, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8088
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    Citations

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    Cited by:

    1. Matteo Fiorini & Marco Sanfilippo, 2022. "Roads and Jobs in Ethiopia [When Should You Adjust Standard Errors for Clustering?”]," The World Bank Economic Review, World Bank, vol. 36(4), pages 999-1020.
    2. Atsushi Iimi, 2022. "Agriculture Production and Transport Connectivity: Evidence from Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 58(12), pages 2483-2502, December.
    3. Christopher Cramer & Jonathan Di John & John Sender, 2022. "Classification and Roundabout Production in High‐value Agriculture: A Fresh Approach to Industrialization," Development and Change, International Institute of Social Studies, vol. 53(3), pages 495-524, May.
    4. Atsushi Iimi & Liangzhi You & Ulrike Wood-Sichra, 2020. "Spatial Autocorrelation Panel Regression: Agricultural Production and Transport Connectivity," Networks and Spatial Economics, Springer, vol. 20(2), pages 529-547, June.
    5. Awotunde, G. J. & Adekunle O. A. & Kolawole, E. A. & Obaniyi, K. S. & Adeniyi, V. A., 2023. "Addressing Rural Poverty in Nigeria Through Youth Participation in Agriculture," Nigerian Journal of Rural Sociology, Rural Sociological Association of Nigeria, vol. 23(1), January.
    6. Yanyan Gao & Xinping Wang, 2023. "Chinese agriculture in the age of high‐speed rail: Effects on agricultural value added and food output," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 387-405, March.
    7. Debebe, Sisay & Bessie, Semeneh & Mehare, Abule & Tazeze, Aemro, 2023. "Private Sector Development in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 32(01), April.
    8. Qiyong Chen & Shiyu Chen & Changfeng Shi & Qinghua Pang & Ang Li, 2021. "Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road," Natural Resources Forum, Blackwell Publishing, vol. 45(4), pages 464-483, November.
    9. Fiorini, Matteo & Sanfilippo, Marco & Sundaram, Asha, 2021. "Trade liberalization, roads and firm productivity," Journal of Development Economics, Elsevier, vol. 153(C).

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    Keywords

    Agricultural Economics;

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