Rural infrastructure, transactions costs and market participation in Kenya

Renkow, Mitch; Hallstrom, Daniel G.; Karanja, David

doi:10.1016/j.jdeveco.2003.02.003

Cited by 180 publications

(106 citation statements)

References 15 publications

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“…First, giveen that a rapid growth of population or rural-urban migration is likely to increase poverty, more emphasis should be placed on policies that enhance support to the rural agricultural sector and rural non-agricultural sector. An example is to support rural infrastructures, such as rural road, electricity, and irrigation systems, that would reduce the transaction costs significantly (Renkow et al 2004). However, even if policymakers are aware of the positive role of rural infrastructure in reducing poverty, the question is whether an extra unit of investment in the infrastructure in rural remote areas is more poverty-reducing than an equivalent investment in less-remote rural areas or urban areas given the budget constraint.…”

Section: Concluding Observations and Policy Implicationsmentioning

confidence: 99%

Poverty reduction during the rural–urban transformation: Rural development is still more important than urbanisation

Imai

Gaiha

Garbero

2017

Journal of Policy Modeling

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Based on cross-country panel datasets, we find that (i) an increase in population share in agriculture is associated with poverty reduction once the longer-term poverty change or the dynamic is taken into account; (ii) rural non-agricultural sector also is poverty reducing in some cases; and (iii) increased population in the mega cities has no role in poverty reduction. In fact, the growth of population in mega cities is "poverty-increasing" in a few cases. Given that a rapid population growth or rural-urban migration is likely to increase poverty, more emphasis should be placed on policies that enhance support for rural agricultural and non-agricultural sectors. If our analysis has any validity, doubts are raised about recent research emphasising the role of secondary towns or urbanisation as the main driver of extreme poverty reduction. Based on cross-country panel datasets, we find that (i) an increase in population share in agriculture is associated with poverty reduction once the longer-term poverty change or the dynamic is taken into account; (ii) rural non-agricultural sector also is poverty reducing in some cases; and (iii) increased population in the mega cities has no role in poverty reduction. In fact, the growth of population in mega cities is "poverty-increasing" in a few cases. Given that a rapid population growth or rural-urban migration is likely to increase poverty, more emphasis should be placed on policies that enhance support for rural agricultural and non-agricultural sectors. If our analysis has any validity, doubts are raised about recent research emphasising the role of secondary towns or urbanisation as the main driver of extreme poverty reduction.

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Section: Concluding Observations and Policy Implicationsmentioning

confidence: 99%

Poverty reduction during the rural–urban transformation: Rural development is still more important than urbanisation

Imai

Gaiha

Garbero

2017

Journal of Policy Modeling

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“…There is only a small body of empirical literature on transaction cost estimation in rural areas of developing countries. Renkow et al (2004), in a study on Kenya, find that "on average the ad valorem tax equivalent of the fixed transactions costs in the sample is 15.5%". Cadot et al (2006), use Malagasy data and define transaction costs as the revenues foregone due to non-participation in markets.…”

Section: Transaction Costsmentioning

confidence: 97%

The Development Policy Evaluation Model (DEVPEM)

Brooks

Filipski

Jonasson

et al. 2011

OECD Food, Agriculture and Fisheries Papers

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“…Khandker and Koolwal (2010) (2002) also indicated the importance of complementarities between public investments in infrastructure and human capital using provincial level data for the Philippines from the 1980s and 1990s. Renkow et al (2004) estimated how transaction costs and market participation is responsive to rural infrastructure in Kenya. Fan and Zhang (2008) and Fan et al (2002) provides evidence on the importance of the market access channel in alleviating poverty in poor countries like Uganda and Tanzania respectively.…”

Section: Empirical Literaturementioning

confidence: 99%

Economy-wide Impact of Investment in Road Infrastructure in Ethiopia: A Recursive Dynamic CGE Approach

Bekele¹,

Ferede²

2016

Ethiopian J. Bus Econ

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In this study an attempt has been made to examine economy wide impact of investment in road infrastructure using a recursive dynamic CGE model. The study used an updated version of the 2005/06 EDRI Social Accounting Matrix. Simulations with the CGE model confirm that with the increasing availability of road infrastructure, there is a positive growth on the macroeconomic and sectorial indicators (Real GDP, absorption, investment, private consumption, real export, and real import) though the magnitude of the effects is relatively small compared with the high investment costs and the changes vary among the different indicators. Similarly, the demand for labor, capital, land and livestock increases with increasing availability of road infrastructure. Income from livestock and land responds better compared to labor and capital as road investment increases. Welfare, measured as equivalent variation, increases on average and at the disaggregate level for all households. The rural poor benefited more from road investment in terms of earning better income and consumption. Road infrastructure affects the production sectors differently. Industrial sectors benefit, while agricultural sectors are relatively less favored.

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Rural infrastructure, transactions costs and market participation in Kenya

Cited by 180 publications

References 15 publications

Poverty reduction during the rural–urban transformation: Rural development is still more important than urbanisation

Poverty reduction during the rural–urban transformation: Rural development is still more important than urbanisation

The Development Policy Evaluation Model (DEVPEM)

Economy-wide Impact of Investment in Road Infrastructure in Ethiopia: A Recursive Dynamic CGE Approach

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