Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57082
Authors: 
DeSilva, Sanjaya
Year of Publication: 
2011
Series/Report no.: 
Working paper, Levy Economics Institute 687
Abstract: 
This paper presents an empirical investigation of the relationship between the spread, spatially and temporally, of market institutions and improvements in the productivity and efficiency of farmers. The data used in this study were collected over two decades in a sample of rice farms in the Bicol Region of the Philippines. Our estimates reveal a significant inverse relationship between distance from the market and farm productivity and efficiency in 1983. While there are substantial improvements in yields, unit costs, and efficiency in the two decades that followed, the gains are larger in the more remote and sparsely populated villages. This finding suggests that the relationship between remoteness and farm outcomes has weakened over time. We also find that the development of markets in the peripheral villages and the improved connectivity between the peripheral villages and market centers are facilitated by population growth, infrastructural investments (specifically, irrigation and roads), and the availability of agricultural extension programs.
Subjects: 
farm efficiency
agricultural markets
institutional conditions
Philippines
JEL: 
O12
O13
Q12
Document Type: 
Working Paper

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