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

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  • Tasso Adamopoulos

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.

Suggested Citation

  • Tasso Adamopoulos, 2025. "Spatial Integration and Agricultural Productivity: Quantifying the Impact of New Roads," American Economic Journal: Macroeconomics, American Economic Association, vol. 17(1), pages 343-378, January.
    • Handle: RePEc:aea:aejmac:v:17:y:2025:i:1:p:343-78
    DOI: 10.1257/mac.20200149
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    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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