This paper uses spatial econometrics to empirically examine a conceptual framework for ruralaccessibility that encompasses three interlinked components – 1) physical road access, 2) provision oftransport services, and 3) access to markets. Specifically, we investigate linkages among roaddevelopment, transport service provision, market access, and agricultural development in Ethiopia. Theanalysis is based on cross-sectional data of cereal crop production (teff, maize and wheat) in three ofEthiopia‟s main agricultural regions (Amhara, Oromia, and Tigray). The empirical estimation, using asystem of equations approach to account for potential endogenous relationships among agriculturalproduction, road placement, transport service provision, and urban agglomeration, provides evidence thatall three components of rural accessibility have potential significant impacts on agricultural production.At Ethiopia‟s current stage of development, we find that 1) road network development appears tosignificantly correlate with agricultural productivity; 2) transport service provision and market accesseach respectively have less impact on agricultural productivity, partially due to their low levels ofdevelopment; and 3) the impacts of road development appear to vary by road quality and by crop.
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