Agriculture, Roads, and Economic Development in Uganda
A large fraction of Uganda's population continues to earn a living from quasi-subsistence agriculture. This paper uses a static general equilibrium model to explore the relationships between high transportation costs, low productivity, and the size of the quasi-subsistence sector. We parameterize the model to replicate some key features of the Ugandan data, and we then perform a series of quantitative experiments. Our results suggest that the population in quasi-subsistence agriculture is highly sensitive both to agricultural productivity levels and to transportation costs. The model also suggests positive complementarities between improvements in agricultural productivity and transportation.
Agriculture, Roads, and Economic Development in Uganda, Douglas Gollin, Richard Rogerson. in African Successes, Volume IV: Sustainable Growth, Edwards, Johnson, and Weil. 2016