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Spatial Autocorrelation Panel Regression: Agricultural Production and Transport Connectivity

Author

Listed:
  • Atsushi Iimi

    (Transport Global Practice, World Bank Group)

  • Liangzhi You

    (International Food Policy Research Institute (IFPRI))

  • Ulrike Wood-Sichra

    (International Food Policy Research Institute (IFPRI))

Abstract

Transport infrastructure is an important determinant of agricultural productivity. Using various new spatial data, the paper measures different types of transport accessibility and estimates their impacts in Ethiopia. The paper takes advantage of a historical event that Ethiopia, a landlocked country, ceased freight rail operations connecting its capital and the main seaport in the late 2000s. Using the substantial changes in transport accessibility, the spatial autocorrelation panel regression is applied to show that the proximity to close markets and the access to the port are of particular importance for agricultural production. The elasticity is estimated at about −0.05 to −0.13, depending on type of accessibility. It is also found that there are considerable spillover effects that come from the spatial autocorrelation errors, meaning that crop production at one place is affected by its neighborhood environment, possibly including land fertility and weather conditions.

Suggested Citation

  • Atsushi Iimi & Liangzhi You & Ulrike Wood-Sichra, 2020. "Spatial Autocorrelation Panel Regression: Agricultural Production and Transport Connectivity," Networks and Spatial Economics, Springer, vol. 20(2), pages 529-547, June.
    • Handle: RePEc:kap:netspa:v:20:y:2020:i:2:d:10.1007_s11067-019-09489-y
    DOI: 10.1007/s11067-019-09489-y
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    Cited by:

    1. Atsushi Iimi, 2022. "Agriculture Production and Transport Connectivity: Evidence from Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 58(12), pages 2483-2502, December.
    2. Huang, Danyang & Hu, Wei & Jing, Bingyi & Zhang, Bo, 2023. "Grouped spatial autoregressive model," Computational Statistics & Data Analysis, Elsevier, vol. 178(C).

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    More about this item

    Keywords

    Spatial autoregressive model; Agriculture production; Transport infrastructure;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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