The Roles of Market Accessibility and Technological Improvement in Rice and Corn Cultivation
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This paper compares the effects of market accessibility and technological improvement in rice cultivation to those in corn cultivation. The main results are as follows. From theoretical point of view, an increase in transaction costs for farmers’ agriculture cultivation or wage rates for their nonagricultural work leads to a decrease in their time for agriculture cultivation. From empirical point of view, we find two things. First, an increase in real wage rate for farmers’ nonagricultural work leads to a decrease in their time for crop cultivation as we show from theoretical model, and the decrease in corn production is greater than that in rice production. Second, being necessary for technological improvement in rice cultivation is more greater than that in corn cultivation. From the main finding of this paper, we suggest that the effectiveness of the policies on market accessibility and technological improvement in agricultural cultivation may be accomplished more easily with rice farming.
Abstract
This paper compares the effects of market accessibility and technological improvement in rice cultivation to those in corn cultivation. The main results are as follows. From theoretical point of view, an increase in transaction costs for farmers’ agriculture cultivation or wage rates for their nonagricultural work leads to a decrease in their time for agriculture cultivation. From empirical point of view, we find two things. First, an increase in real wage rate for farmers’ nonagricultural work leads to a decrease in their time for crop cultivation as we show from theoretical model, and the decrease in corn production is greater than that in rice production. Second, being necessary for technological improvement in rice cultivation is more greater than that in corn cultivation. From the main finding of this paper, we suggest that the effectiveness of the policies on market accessibility and technological improvement in agricultural cultivation may be accomplished more easily with rice farming.
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