Abstract
This paper studies how farmers’ participation in non-local markets shapes agricultural productivity. Using farm-level data from Colombia, we document two empirical patterns about the spatial organization of agriculture. First, across municipalities, better access to urban centers increases farmers’ productivity and participation in non-local markets, but reduces farm size. Second, within municipalities and crop-choices, larger farms participate more in non-local markets and have higher productivity. To rationalize these patterns, we introduce farmers with heterogeneous productivity and market participation choices into a spatial economy model. We take the model to data and find that removing the geographic barriers to farmers’ participation in non-local markets can increase Colombia's agricultural value added by up to 14%. Changes in the productivity composition of farmers contribute substantially to this impact, particularly in remote regions with low participation of farmers in non-local markets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
