Income diversification and the rural non-farm economy

Income diversification and the rural non-farm economy PDF Author: Paudel, Susan
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 28

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Book Description
This paper empirically investigates the role of off-farm and non-agricultural activities in Myanmar’s rural sector, based primarily on the nationally representative MLCS 2016/17. We find evidence of extensive diversification: rural households are generating about 25 percent of their income on the farm; the remaining income comes from wage labor (34 percent), non-agricultural businesses (27 percent), and about 15 percent from passive sources (remittances and others). More than half of rural households engage in non-farm activities. Despite this large participation, the non-farm sector is informal and has yet to reach its full job-creating potential. Diversification is broad-reaching, and prevalent at all levels of income; however, wealthier households participate more heavily in the non-farm sector. Land constraints, household size, education levels, and gender all appear correlated with households’ propensity to diversify. Since the start of the twin crises, we continue to see significant diversification in rural incomes and all sectors – farm and non-farm – suffering very similar income shocks.

Income diversification and the rural non-farm economy

Income diversification and the rural non-farm economy PDF Author: Paudel, Susan
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 28

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Book Description
This paper empirically investigates the role of off-farm and non-agricultural activities in Myanmar’s rural sector, based primarily on the nationally representative MLCS 2016/17. We find evidence of extensive diversification: rural households are generating about 25 percent of their income on the farm; the remaining income comes from wage labor (34 percent), non-agricultural businesses (27 percent), and about 15 percent from passive sources (remittances and others). More than half of rural households engage in non-farm activities. Despite this large participation, the non-farm sector is informal and has yet to reach its full job-creating potential. Diversification is broad-reaching, and prevalent at all levels of income; however, wealthier households participate more heavily in the non-farm sector. Land constraints, household size, education levels, and gender all appear correlated with households’ propensity to diversify. Since the start of the twin crises, we continue to see significant diversification in rural incomes and all sectors – farm and non-farm – suffering very similar income shocks.

The Rural Non-Farm Economy in Georgia

The Rural Non-Farm Economy in Georgia PDF Author: D.J Bezemer
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The literature on transition economies devotes relatively attention to agriculture and the rural non-farm economy, despite the importance of the sector and its importance to the livelihoods of the majority of the worlds poor. This paper is part of growing volume of valuable empirical work on agriculture in transition countries and especially on the topic of the rural non-farm economy and livelihood diversification among the poor. The focus of this paper is on rural non-farm livelihoods in Georgia. The main aim of this paper is to improve understanding of the dynamics of the RNFE in providing employment and income diversification opportunities in Georgia.

The Rural-Non-Farm Economy, Livelihoods and Their Diversification

The Rural-Non-Farm Economy, Livelihoods and Their Diversification PDF Author: Junior R. Davis
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
Research shows that rural populations across Africa, Asia and Latin America rely on rural non-farm economies (RNFE) for between 30 percent and 50 percent of their income. These activities are evidently economically important, but they are also extremely complex and difficult to measure, making it hard to determine suitable policies. To clarify key policy issues, we analysed 55 donor RNFE and livelihood diversification projects and summarised the emerging issues. The RNFE refers to all income-generating activities in rural areas that are not primary agricultural production (meaning activities other than growing crops, fishing or forestry). They may take place on farms, despite being described as "non-farm" activities. Factors affecting the development of the RNFE exist on three levels: (i) Household level factors include assets of household members (finance, education and experience) and social capital (such as social networks and information sharing). (ii) Group level factors are valuable local natural resources, the quality of local governments, local infrastructure, links to towns and trade. (iii) Socio-cultural factors include ethnicity, gender, religion and caste, which often influence power relations and, consequently, people's ability to access certain income-generating activities. The most important questions for the paper and policy makers are whether the RNFE contributes to poverty alleviation and, if so, how to encourage it.

Rural income diversification in Ethiopia: Patterns, trends, and welfare impacts

Rural income diversification in Ethiopia: Patterns, trends, and welfare impacts PDF Author: Abate, Gashaw Tadesse
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 5

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Book Description
Increased diversification of rural households into the rural non-farm economy is an important driver of economic growth and structural transformation in countries like Ethiopia where most people live in rural areas and are largely dependent on seasonal agriculture. In this study, we explore the patterns and trends of diversification and assess its drivers and welfare effects during the recent decade (2012 – 2019) using three rounds of representative household data collected from four major regions in Ethiopia. Our results show that sample households generally adopt a livelihood strategy dominated by farming and that the level of diversification has been stagnant over the period of analysis considered. More importantly, most households continue to draw a substantial share of their income from crop production, followed by livestock. The income from non-farm activities accounts only between 17-23% of the total household income. Upon exploring the link between diversification and welfare outcomes, we find that households with relatively diversified income sources have significantly higher consumption expenditure per capita, consume diverse diets, and live in house with better roof quality. Further analyses reveal that income diversification is positively associated with credit access, membership in social insurance, ownership of assets and wealth, and population density. Conversely, access to relatively large, fertile, and irrigable land discourages diversification. In sum, the results imply the need for a deliberate effort to expand the non-farm economy to tap its full potential for employment generation, income growth, and overall welfare improvements.

Gender and Preferences for Non-farm Income Diversification

Gender and Preferences for Non-farm Income Diversification PDF Author: Berber Kramer
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description


Rural Non-farm Employment

Rural Non-farm Employment PDF Author: P. Purushotham
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 342

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Book Description
Contributed articles presented earlier at a seminar on rural manpower policy in various Indian states for the poor.

Income Diversification and Diversity

Income Diversification and Diversity PDF Author: Ekrem Gjokaj
Publisher:
ISBN: 9783659560088
Category :
Languages : en
Pages : 56

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Book Description


Transforming the Rural Nonfarm Economy

Transforming the Rural Nonfarm Economy PDF Author: Steven Haggblade
Publisher: Intl Food Policy Res Inst
ISBN: 0801886643
Category : Business & Economics
Languages : en
Pages : 514

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Book Description
Contrary to conventional wisdom that equates rural economies with agriculture, rural residents in developing countries often rely heavily on activities other than farming for their income. Indeed, nonfarm work accounts for between one-third and one-half of rural incomes in the developing world. In recent years, accelerating globalization, increasing competition from large businesses, expanding urban markets for rural goods and services, and greater availability of information and communication technology have combined to expose rural nonfarm businesses to new opportunities as well as new risks. By examining these rapid changes in the rural nonfarm economy, international experts explore how the rural nonfarm economy can contribute to overall economic growth in developing countries and how the poor can participate in this rapidly evolving segment of the economy. The authors review an array of recent studies of the rural nonfarm economy in order to summarize existing empirical evidence, explore policy implications, and identify future research priorities. They examine the varied scale, structure, and composition of the rural nonfarm economy, as well as its relationship with agricultural and urban enterprises. And they address key questions about the role of public intervention in the rural nonfarm economy and how the rural poor can participate in and navigate the rapid transition underway in rural areas. The contributors offer new insights to specialists in rural development and to others interested in overall economic development.

The Rural Non-Farm Economy and Poverty Alleviation in Armenia, Georgia and Romania

The Rural Non-Farm Economy and Poverty Alleviation in Armenia, Georgia and Romania PDF Author: Junior R. Davis
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The literature on transition economies devotes relatively little attention to agriculture and the rural non-farm economy, despite the importance of the sector and its relevance to the livelihoods of the majority of the world's poor. This paper is part of a growing volume of empirical work on agriculture in transition countries and especially on the topic of the rural non-farm economy and livelihood diversification among the poor. The empirical work presented in this report is primarily based on large (nation-wide) rural household surveys and other field-related research activities using a broad range of methodologies. In recent years there has been growing recognition of the role of the non-farm sector for employment, income smoothing and income generation in rural areas in the developing, developed and transition countries. However, there has been limited focus on the factors that determine people's capacity to take advantage of or to generate these opportunities. It is hypothesised that two processes are apparent: demand-pull, where rural people respond to new opportunities; and distress-push, where the poorest are driven to seek non-farm employment as a survival strategy. Sometimes these processes work together. The non-farm sector is thus vital for rural employment and incomes in situations of both stagnant and buoyant agriculture and rural economy as a whole. It is vital for Armenia and Georgia's economic growth, as the development of remunerative and sustainable non-farm employment opportunities will have important effects in terms of poverty reduction. It is also important for Romania's EU accession, currently foreseen in 2007, as the development of remunerative and sustainable non-farm employment opportunities will have important effects in terms of the use of future structural funds, regional assistance and the implementation of the Common Agricultural Policy. This research identifies the key socio-economic factors, resources, activities and constraints to rural households and enterprises in the non-farm rural economy. These data were collected at the micro-level and analysed in the context of the sustainable livelihoods framework, farm systems theory and contemporary econometric methodologies. The aim was to derive policy conclusions conducive to the development of sustainable rural livelihoods.

Economic transformation and diversification towards off-farm income in rural and urban areas

Economic transformation and diversification towards off-farm income in rural and urban areas PDF Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
ISBN: 9251377154
Category : Social Science
Languages : en
Pages : 76

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Book Description
This working paper is the update of an earlier cross-country study on household income sources using an expanded harmonized dataset. The analysis presented covers a total of 93 surveys representing 41 countries – nearly double that of the previous study – to depict rural and urban households’ livelihood strategies across different levels of economic development. The findings shed light on the relationship between household livelihood activity portfolios and per capita gross domestic product, confirming a picture of multiple livelihood activities across the rural and urban space, at different levels of development. However, we find an emerging divergence between countries from sub-Saharan Africa and those from the rest of the world regarding employment and income generation.