Worldwide, more than 1.2 billion people are engaged in subsistence agriculture in rural areas (World Development Report, 2007), mostly in developing countries where transportation infrastructure is lacking. Poor transportation infrastructure will tend to limit market access for farmers – both for buying inputs like chemical fertilizer, and for selling maize output. The goal of this project is to evaluate three important questions regarding transport costs and economic activity in rural markets: 1) How much do transport costs (due to poor quality roads) contribute to spatial price
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