Work

Access to markets and technology adoption in the agricultural sector: Evidence from Brazil

Year: 2025

Type: article

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.

Source: Transportation Research Part A Policy and Practice

DOI: 10.1016/j.tra.2025.104786

Author: Diego Astorga-Rojas

Institution: Pontificia Universidad Javeriana

Language: English

Topic: Agricultural Innovations and Practices

Subfield: General Agricultural and Biological Sciences

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Industry, innovation and infrastructure, Zero hunger, Reduced inequalities, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,270