Road, participation in markets, and benefits to agricultural households: Evidence from the topography-based highway network in Nepal
By: Shresthan, Slesh A
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Material type: 
BookPublisher: Economic Development And Cultural Change Description: 68(3), Apr, 2020: p.839-864.Subject(s): Agricultural livelihoods, Agricultural production
In:
Economic Development And Cultural ChangeSummary: This paper identifies the role of roads in improving agricultural livelihoods and examines the key market mechanisms through which improved connectivity translates into economic gains for agricultural households. I use a rigorous identification strategy based on the rugged terrain that significantly influences the design and costs of constructing roads in Nepal, along with new geospatial data to find a positive impact of roads on farmland values. A 1% decrease in distance to a road raises the market price of an agricultural plot from 0.1% to 0.25%. This increase in land value is underpinned by increased participation by households in agricultural markets and improved farm production and incomes. The results also suggest that a decrease in the distance to a road contributes to the commercialization of agriculture and increases the use of fertilizer in agricultural production, thus reducing the unit cost of fertilizers. – Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 68(3), Apr, 2020: p.839-864 | Available | AR123903 |
This paper identifies the role of roads in improving agricultural livelihoods and examines the key market mechanisms through which improved connectivity translates into economic gains for agricultural households. I use a rigorous identification strategy based on the rugged terrain that significantly influences the design and costs of constructing roads in Nepal, along with new geospatial data to find a positive impact of roads on farmland values. A 1% decrease in distance to a road raises the market price of an agricultural plot from 0.1% to 0.25%. This increase in land value is underpinned by increased participation by households in agricultural markets and improved farm production and incomes. The results also suggest that a decrease in the distance to a road contributes to the commercialization of agriculture and increases the use of fertilizer in agricultural production, thus reducing the unit cost of fertilizers. – Reproduced
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