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Access to Markets and Technology Adoption in the Agricultural Sector: Evidence from Brazil

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  • Astorga-Rojas, Diego

Abstract

This paper studies how better market access through infrastructure improvements leads to the adoption of new agricultural technologies. In particular, I study the case of Brazil, and how the construction of the federal highway network from 1950 to 2000 affected the modernization of the agricultural sector. To address endogeneity concerns, I use the creation of Brasilia, and the project to connect it to the state capitals, as a natural experiment. I build a predicted network of highways by computing the cheapest way to connect the state capitals with Brasilia and use it to instrument market access. I find that municipalities where market access increased adopted new agricultural inputs such as fertilizers and pesticides, improving agricultural productivity as a result. Market access also increased the machinery and equipment used for production, but only when Brazil deregulated its agricultural markets and opened to international trade, after 1990.

Suggested Citation

  • Astorga-Rojas, Diego, 2024. "Access to Markets and Technology Adoption in the Agricultural Sector: Evidence from Brazil," EconStor Preprints 289868, ZBW - Leibniz Information Centre for Economics.
  • Handle: RePEc:zbw:esprep:289868
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    File URL: https://www.econstor.eu/bitstream/10419/289868/1/Brasil_highways.pdf
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    References listed on IDEAS

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    Cited by:

    1. Giuseppe Timpanaro & Vera Teresa Foti & Giulio Cascone & Manuela Trovato & Alessandro Grasso & Gabriella Vindigni, 2024. "Living Lab for the Diffusion of Enabling Technologies in Agriculture: The Case of Sicily in the Mediterranean Context," Agriculture, MDPI, vol. 14(12), pages 1-22, December.

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    More about this item

    Keywords

    agricultural productivity; infrastructure; market access; mechanization;
    All these keywords.

    JEL classification:

    • 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
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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