Domestic Trade Frictions and Agriculture

• 成果类型: Article
• 署名作者: Sotelo, Sebastian
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/706859
• 发表日期: 2020
• 页码: 2690-2738
• 关键词: comparative advantage; INTERNATIONAL-TRADE; transport costs; PRODUCTIVITY; gravity; geography; models; IMPACT; size

摘要

I develop a model of agriculture on heterogeneous land to study the relation between trade, productivity, and welfare in Peru, where farmers face high internal and external trade costs. I quantify the model with new data on crop prices, yields, and land allocations. I then measure the effects of changes to trade opportunities. A policy of paving roads raises aggregate productivity (4.9%) and the median farmer's welfare (2.7%), but increased competition from remote suppliers harms 20% of farmers. An increase in international grain prices spreads unevenly across regions, benefiting farmers but hurting urban consumers close to ports.