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Marketing externalities and market development

Author: M Shahe Emran; Farhad Jahan Shilpi; World Bank. Development Research Group. Rural Development.
Publisher: Washington, D.C. : World Bank, Development Research Group, Rural Development, [2002]
Series: Policy research working papers, no. 2839.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
Emran and Shilpi use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed costs imply that a trader is able to offer higher prices to producers if the marketed surplus is higher in villages. The semi-parametric estimates identify highly  Read more...
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Additional Physical Format: Print version:
Emran, M. Shahe.
Marketing externalities and market development.
Washington, D.C. : World Bank, Development Research Group, Rural Development, [2002]
(OCoLC)50020220
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: M Shahe Emran; Farhad Jahan Shilpi; World Bank. Development Research Group. Rural Development.
OCLC Number: 647426204
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (31 pages) : illustrations.
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Policy research working papers, no. 2839.
Responsibility: M. Shahe Emran, Forhad Shilpi.

Abstract:

Emran and Shilpi use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed costs imply that a trader is able to offer higher prices to producers if the marketed surplus is higher in villages. The semi-parametric estimates identify highly nonlinear own and cross commodity externality effects in the sale of farm households. The vegetable markets in villages with low marketable surplus seem to be trapped in segmented local market equilibrium. The analysis points to the coordination failure in farm sale decisions as a plausible explanation for the lack of development of rural markets even after market liberalization policies are implemented. This paper--a product of Rural Development, Development Research Group--is part of a larger effort in the group to understand the process of development of rural markets. The authors may be contacted at fshilpi@worldbank.org or emran@stanford.edu.

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