American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Spatial Integration and Agricultural Productivity: Quantifying the Impact of New Roads
American Economic Journal: Macroeconomics
vol. 17,
no. 1, January 2025
(pp. 343–78)
Abstract
I study the effects of Ethiopia's 1997–2014 road expansion program on agricultural productivity and structural change by combining a quantitative spatial sectoral framework with novel district-level panel data on agricultural production and geocoded transport costs. In the model, the spatial heterogeneity of transport costs affects the distribution of production and mobile inputs across locations and sectors, and the allocation of land across crops within locations. Varying transport costs to their new actual levels, the model delivers substantial structural change, a rise in agricultural productivity one-tenth of the data, and a pattern of productivity gains across districts consistent with the data.Citation
Adamopoulos, Tasso. 2025. "Spatial Integration and Agricultural Productivity: Quantifying the Impact of New Roads." American Economic Journal: Macroeconomics, 17 (1): 343–78. DOI: 10.1257/mac.20200149Additional Materials
JEL Classification
- H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- Q11 Agriculture: Aggregate Supply and Demand Analysis; Prices
- Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness
- R42 Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
- R53 Public Facility Location Analysis; Public Investment and Capital Stock
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