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American Economic Journal: Applied Economics: Vol. 2 No. 3 (July 2010)

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Information, Direct Access to Farmers, and Rural Market Performance in Central India

Article Citation

Goyal, Aparajita. 2010. "Information, Direct Access to Farmers, and Rural Market Performance in Central India." American Economic Journal: Applied Economics, 2(3): 22-45.

DOI: 10.1257/app.2.3.22

Abstract

This paper estimates the impact of a change in procurement strategy of a private buyer in the central Indian state of Madhya Pradesh. Beginning in October 2000, Internet kiosks and warehouses were established that provide wholesale price information and an alternative marketing channel to soy farmers in the state. Using a new market-level dataset, the estimates suggest a significant increase in soy price after the introduction of kiosks, supporting the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results point toward an improvement in the functioning of rural agricultural markets. (JEL O13, O18, Q12, Q13)

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Authors

Goyal, Aparajita (World Bank)

JEL Classifications

O13: Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
O18: Economic Development: Regional, Urban, and Rural Analyses; Transportation
Q12: Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q13: Agricultural Markets and Marketing; Cooperatives; Agribusiness

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