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

Abstract

Agriculture important in Africa, employing a large share of the labor force and earning foreign exchange. Transport connectivity has long been a crucial constraint in the region. In theory, railways have the advantage of shipping bulky freight, such as fertilizer, at low costs. However, in many African countries, railways were in virtual bankruptcy in 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. The paper takes advantage of the historical event that a major rail line connecting the country to Port Djibouti was abandoned during the 2000s. With the fixed effects and instrumental variable techniques combined, an agricultural production function is estimated. It is found that deteriorated transport accessibility to the port had a significantly negative impact. The use of fertilizer particularly decreased with increased transport costs.

Chinese agriculture in the age of high‐speed rail: Effects on agricultural value added and food output

“…The second channel is the input adjustment effect. Transportation improvements reduce the cost of fertilizers, farm machinery, and advanced technologies, thereby increasing agricultural productivity and output (Iimi et al, 2019; Olsson, 2009; Qin & Zhang, 2016; Seedhouse et al, 2016; Shrestha, 2020; Tong et al, 2013). New markets for agricultural products can also increase the demand for rural workers, induce investments in agricultural production, boost farming income, and reduce rural poverty (Dercon et al, 2009; Khandker et al, 2009; Qin & Zhang, 2016; Shrestha, 2020).…”

“…Transport infrastructure has long been observed as a crucial factor in raising agricultural productivity and reducing rural poverty (Dercon et al, 2009; Iimi et al, 2019; Khandker et al, 2009; Mamatzakis, 2003; Qin & Zhang, 2016). While the existing literature has extensively examined the various impacts of rural roads and conventional railways (Asher & Novosad, 2020; Berg et al, 2018; Donaldson & Hornbeck, 2016; Iimi et al, 2019; Mu & van de Walle, 2011; Olsson, 2009; Seedhouse et al, 2016; Shrestha, 2020; Tong et al, 2013), few studies have examined whether and how high‐speed rail (HSR) affects agriculture.…”

“…Transport infrastructure has long been observed as a crucial factor in raising agricultural productivity and reducing rural poverty (Dercon et al, 2009; Iimi et al, 2019; Khandker et al, 2009; Mamatzakis, 2003; Qin & Zhang, 2016). While the existing literature has extensively examined the various impacts of rural roads and conventional railways (Asher & Novosad, 2020; Berg et al, 2018; Donaldson & Hornbeck, 2016; Iimi et al, 2019; Mu & van de Walle, 2011; Olsson, 2009; Seedhouse et al, 2016; Shrestha, 2020; Tong et al, 2013), few studies have examined whether and how high‐speed rail (HSR) affects agriculture. This study adds to the broad literature on the nexus between transportation and rural development by using China's HSR rollouts as a plausible exogenous shock to transportation improvement in counties to identify the effect of HSR on agricultural economies.…”

“…Transport infrastructure has long been observed as a crucial factor in raising agricultural productivity and reducing rural poverty (Dercon et al, 2009;Iimi et al, 2019;Khandker et al, 2009;Mamatzakis, 2003;Qin & Zhang, 2016).…”

Recipes for success: policy innovations to transform Africa’s food systems and build resilience

“…The development of rail and rural roads expedites the adoption of productivity-enhancing technologies. 393,394 Africa's aviation sector remains underdeveloped, especially for regional trade, but the signing of an agreement among 23 states to co-operate in a Single African Air Transport Market (SAATM) in January 2018 and the establishment of the AfCFTA is expected to significantly improve the continent's aviation supply chains. 395 Productive infrastructure: energy, irrigation and telecommunications…”