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  3. American Economic Journal: Macroeconomics
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  5. Spatial Integration and Agricultural Productivity: Quantifying the Impact of New Roads

American Economic Journal:
Macroeconomics

ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)

Spatial Integration and Agricultural Productivity: Quantifying the Impact of New Roads

  • Tasso Adamopoulos
American Economic Journal: Macroeconomics (Forthcoming)

Abstract

I study the effects of Ethiopia's 1996–2014 road expansion program on agricultural productivity and structural change. I combine a quantitative spatial framework of structural change with a novel district-level panel data set on agricultural production and transport costs. I estimate transport costs between districts and domestic crop markets accounting for the road network, and the topography of the terrain. The model features multiple rural locations, where delivering crops to market, as well as accessing intermediate inputs is subject to location-good-specific transport costs and local land frictions.

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