Search results
1 – 10 of over 32000The magnitude of rural poverty is larger as compared to urban poverty in India. The basic explanation for sectoral poverty differentiates in India is the misallocation of…
Abstract
The magnitude of rural poverty is larger as compared to urban poverty in India. The basic explanation for sectoral poverty differentiates in India is the misallocation of resources and urban‐biased strategy of development. Investment allocation in Indian planning is not strictly based on the consideration of equity and economic efficiency. The rural sector gets the smaller share of investible resources, and therefore rural income, output and employment fall short of the optimum level, and rural poverty intensifies.
Details
Keywords
Yongqin Wang and Xin Gao
This paper studies the political economy of the endogenous urban–rural divide in two dimensions: labor market and provision of public goods.
Abstract
Purpose
This paper studies the political economy of the endogenous urban–rural divide in two dimensions: labor market and provision of public goods.
Design/methodology/approach
This paper gives a dual-sector model endogenously depending on the consumption of public goods (club goods), the number of rural–urban migrants and the tax rate (transfer payments).
Findings
According to the research findings in this paper, the constraints on the participation of rural residents portray the rural residents' bargaining power, and in the game between the urban elites and the rural residents, tax rates depend on the preferences of the urban elites and the constraints urban elites and the rural residents jointly face. Therefore, the urban elites have to set tax rates deviating from the most preferred ones. The model in this paper can explain a series of empirical findings and yield new theoretical findings for empirical testing.
Originality/value
Significantly, the paper finds that the increase in agricultural productivity will lead to industrialization, accompanied by the disintegration of the dual-sector model. However, though the increase in industrial productivity can accelerate industrialization, it will further expand the urban–rural divide.
Details
Keywords
David Deakins, Jo Bensemann and Martina Battisti
The purpose of this paper is to undertake a qualitative case-based analysis of the factors affecting the capability of primary sector rural entrepreneurs to manage regulation. The…
Abstract
Purpose
The purpose of this paper is to undertake a qualitative case-based analysis of the factors affecting the capability of primary sector rural entrepreneurs to manage regulation. The authors suggest a conceptual framework to aid understanding of their skill and capability when managing regulation.
Design/methodology/approach
Using a multiple case study approach the entrepreneurial skill of rural entrepreneurs is examined in light of three sets of factors: institutional regulatory, social capital and economic market.
Findings
The case analysis indicates diversity in the skill of rural entrepreneurs to manage regulation across sub-sectors including dairy and stock farming, fruit growers and vegetable/horticultural producers. The conceptual framework indicates that there are three areas that influence entrepreneurial skill: relationships with national cooperatives, relationships with the institutional regulatory environment and relationships with the economic market environment. This provides the authors with a conceptual framework to aid understanding of the interplay of factors affecting entrepreneurial skill and capability to manage regulation.
Originality/value
This study contributes to the emerging stream of literature highlighting the importance of industry sector context for understanding the complex and differing regulatory effects on entrepreneurs’ skill and hence capability to manage. Case comparisons allow the authors to explain and understand why entrepreneurs that operate similar businesses within the same sector respond differently to regulation.
Details
Keywords
Robert Newbery and Gary Bosworth
The purpose of this paper is to challenge calls for a monolithic rural home‐based business (HBB) sector and instead propose meaningful sub‐sectors of HBB that fit within…
Abstract
Purpose
The purpose of this paper is to challenge calls for a monolithic rural home‐based business (HBB) sector and instead propose meaningful sub‐sectors of HBB that fit within contemporary rural economic development theory. This informs business support and policy objectives.
Design/methodology/approach
Survey analysis of rural microbusinesses in the North East of England compares home‐based and other rural microbusinesses to illustrate their defining characteristics. Case study interviews are then used to test theory development and provide greater understanding about the motivations and aspirations of HBB owners.
Findings
The research demonstrates that the rural HBB sector is not homogenous. For some, the home is the business, for others it is a convenient location and for others it is not the place of work, simply the registered business address. This has significant implications for the needs of each type of business and their prospects for growth.
Research limitations/implications
This paper introduces the concept of sub‐sectors of HBBs but more detailed survey work can establish whether these are fully inclusive. With a changing economic climate, further research might also examine the resilience of these businesses in recession and their ability to react to growth opportunities in a period of upturn.
Originality/value
As an emergent area of study in the fields of small business and rural economy, HBBs are potential vehicles for both social and economic development. With large numbers of HBBs in rural areas, this paper illustrates the need to understand both their potential and their limitations in order to maximise their contribution to vibrant and sustainable rural economy.
Details
Keywords
Minggao Shen, Jikun Huang, Linxiu Zhang and Scott Rozelle
This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.
Abstract
Purpose
This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.
Design/methodology/approach
The research is based on a unique data set collected by the authors and other collaborators from a 1998 survey of financial institutions, enterprises, and government officials in southern China.
Findings
Based on an empirical investigation of rural financial reforms, it is argued that China's two‐decade long financial reform was a gradual process that accommodates reforms in other sectors and responds to changing policy goals and the economic and institutional environment in which financial institutions operate. Although using standard measures of financial system performance may cast doubt on the effectiveness of China's rural banking system, when one understands the different roles that it has been asked to play, it can be argued that it has not operated so poorly.
Research limitations/implications
In conclusion, it is found that China's rural economic environment is still changing. If the system continues to change in the future, responding to pressures in the economy, further financial reforms will almost certainly emerge in the coming years.
Practical implications
These findings, although primarily from the 1980s and 1990s, are still helpful in understanding the reform process that is currently ongoing.
Social implications
This paper will help readers make sense of agricultural financial reforms and will allow for more discourse over what has been accomplished and what still is needed.
Originality/value
This is the first manuscript to comprehensively put China's rural financial reforms into the context of modern economic analysis, explaining why China's government proceeded as they did and why the reforms have unfolded in such a stop and start manner.
Details
Keywords
Despite the worldwide importance of third sector organizations in rural areas, the theoretical connection between the third sector and rural development remains largely…
Abstract
Purpose
Despite the worldwide importance of third sector organizations in rural areas, the theoretical connection between the third sector and rural development remains largely unexplored. The purpose of this paper is to develop a theoretical explanation of why and how third sector organizations contribute to rural development.
Design/methodology/approach
The paper builds upon the institutional economics of Thorstein Veblen and the tektology of Alexander Bogdanov. Tektology is used as an instrument to bring Veblenian criticism of pecuniary culture to bear on the explanation of the rural third sector.
Findings
Based on the tektological law of systems divergence, the Veblenian pecuniary‐industrial dichotomy and rural‐urban disparities are shown to be interrelated evolutionary consequences of pecuniary culture. Third sector organizations' contribution to rural development is explained in terms of the tektological notion of counter‐differentiation. Applied to pecuniary culture, counter‐differentiation involves attenuating its basic ingredients, such as private ownership and pecuniary motivation. This is achieved through third sector organizations' characteristics such as profit appropriation constraint and nonpecuniary goal orientation, respectively.
Originality/value
The paper identifies the institutional economics implications of the general systems theory and utilizes these implications to inform the research on the internationally relevant problem of rural development.
Details
Keywords
Shreya Kapoor and Sanjeev Kapoor
Doubling farming households’ income through occupational diversification to the non-farm sector has been advocated to be of paramount importance in an agrarian economy such as…
Abstract
Purpose
Doubling farming households’ income through occupational diversification to the non-farm sector has been advocated to be of paramount importance in an agrarian economy such as India. The purpose of this paper is to analyse the effects of non-farm activities on rural household incomes in four different Indian states by using a propensity score matching technique and developing an endogenous switching model.
Design/methodology/approach
The research is based on secondary data taken from four quinquennial rounds of employment and unemployment surveys conducted by the National Sample Survey Organization.
Findings
The matching results indicate a maximum monthly rise in per capita income of Rs. 60 in Gujarat and a minimum increase of Rs. 18 in Rajasthan among rural households employed in the non-farm sector as compared to the farm sector. The findings confirm that rural non-farm structural diversification cannot be viewed as a blueprint for increasing rural household incomes in different states. Further, it suggests the need to segmenting the different states on the basis of agricultural development for increasing rural incomes.
Research limitations/implications
The study argues that Indian states with a strongly developed farm sector i.e. Gujarat and Punjab are not ideally suited to undergo structural changes in their economic pursuit. The estimates suggest that the transition of rural households from farm to non-farm-sector activities is a very weak strategy in agriculturally developed states of Gujarat and Punjab, whereas non-farm diversification becomes a pivotal strategy for increasing rural household incomes in less agriculturally developed states such as Rajasthan and Uttar Pradesh. A contrasting point that arises from these evidence is that although diversification to the non-farm sector leads to higher income, but the resultant figures are very scanty.
Originality/value
The present study contributes to the existing literature by providing evidence and policy implications on rural non-farm diversification in India and its impact on the rural household income. The study can help the policymakers in framing policies aiming at increasing the income of the rural household through the structural transition of the rural economy.
Details
Keywords
The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the…
Abstract
Purpose
The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the assumption that all districts across India would have had similar wage trends in the absence of the program. The author argues that this assumption may not be true due to non-random allocation of districts to the program’s three phases across states and different economic growth paths of the states post the implementation of NREGS.
Design/methodology/approach
To control for overall macroeconomic trends, the author allows for state-level time fixed effects to capture the differences in growth trajectories across districts due to changing economic landscape in the parent-state over time. The author also estimates the expected farm sector wage growth due to the increased public work employment provision using a theoretical model.
Findings
The results, contrary to the existing studies, do not find support for a significantly positive impact of NREGS treatment on private cultivation wage rate. The theoretical model also shows that an increase in public employment work days explains very little of the total growth in cultivation wage post 2004.
Originality/value
This paper looks specifically at farm sector wage growth and the possible impact of NREGS on it, accounting for state specific factors in shaping farm wages. Theoretical estimates are presented to overcome econometric limitations.
Details
Keywords
Praveen Kulkarni, Rohit Mutkekar, Shashidhar Chiniwar and Sanjeev Ingalagi
The purpose of this paper is to provide the insights on the challenges influencing rural start-ups. It provides insights with regards to managerial, operational, marketing and…
Abstract
Purpose
The purpose of this paper is to provide the insights on the challenges influencing rural start-ups. It provides insights with regards to managerial, operational, marketing and finance-related challenges influencing the rural start-ups in the study. The study aims to expand the domain of start-ups by including a broader range of challenges and related aspects found in the start-up literature.
Design/methodology/approach
The paper opted for an exploratory study using the open-ended approach of grounded theory, including 61 rural start-ups operating in Karnataka, India. The data were analysed through non-parametric test to understand the comparison between different sectors of rural start-ups.
Findings
It suggests that marketing techniques and infrastructure challenges influences the rural start-ups. Therefore, success of start-ups is influenced by these related variables.
Research limitations/implications
Because of the chosen research approach, the research results may lack generalizability. Researchers are therefore encouraged to test the proposed propositions further in the area of challenges and growth in the domain of managerial, infrastructure, marketing, finance, human resource and logistics in rural start-ups. The study is restricted to rural start-ups located in districts of Karnataka, India.
Practical implications
The paper includes implications for managing the challenges for enhancing the growth of start-ups. The paper provides insights on the significant challenges witnessed by the start-ups and provides directions for the growth of start-ups.
Social implications
This paper fulfils an identified need of the start-ups in rural sector and contribute to the growth of start-ups in rural sector of India.
Originality/value
This paper fulfils an identified need to study how rural start-ups operate and create a niece in the growth of Indian economy.
Details
Keywords
The purpose of this study is to elaborate the theoretical mechanism of rural credit input affecting the urban–rural income gap from the perspective of labor transfer, and use a…
Abstract
Purpose
The purpose of this study is to elaborate the theoretical mechanism of rural credit input affecting the urban–rural income gap from the perspective of labor transfer, and use a dynamic panel mediation model to test the transmission mechanism of rural credit input affecting the urban–rural income gap through labor transfer, so as to provide an empirical basis for narrowing the urban–rural income gap in China.
Design/methodology/approach
This paper constructs a mechanism analysis framework for rural credit input affecting the urban–rural income gap. From the perspective of resource allocation and labor transfer, the authors expound the transmission path of rural credit input to the urban–rural income gap and analyze the theoretical mechanism of rural credit input that affects the urban–rural income gap through labor transfer. Based on this, this paper uses the dynamic panel mediation model to test the effect relationship between rural credit input, labor transfer and urban–rural income gap in 31 provinces of China from 2009 to 2018.
Findings
In theory, increasing rural credit input can ease the financial constraints on the development of “agriculture, rural areas and farmers” and provide capital accumulation for the development of rural non-agricultural industries. The development of rural non-agricultural industries can provide more jobs for rural surplus labor, thereby increasing the labor rate of return in rural areas, and ultimately conducive to narrowing the urban–rural income gap. Further, increasing rural credit input can improve the development level of rural non-agricultural industries, thereby promoting the transfer of agricultural labor. At the same time, rural credit input based on the intermediary variable of labor transfer has a significant inhibitory effect on the urban–rural income gap.
Research limitations/implications
This study mainly focuses on the relationship between rural credit input, labor transfer and urban–rural income gap, so it is impossible to use micro-level data to further verify the impact of rural credit input on labor transfer. At the same time, the collection of indicators of rural credit investment in the China Financial Yearbook only started in 2009, which limited the number of samples to a certain extent.
Practical implications
This paper assumes that the economy is mainly composed of urban and rural economic sectors. Therefore, labor can flow freely between urban and rural areas. However, in the near future, China's rural secondary and tertiary industries may develop rapidly, especially with the in-depth implementation of rural revitalization strategy, it is very important to pay attention to the current situation of rural industrial structure and incorporate the factors such as rural industrial structure into the existing model.
Social implications
This study attempts to provide a new perspective and inspiration for rural credit input, the optimal allocation of labor force and narrowing the urban–rural income gap under China's rural revitalization strategy.
Originality/value
Based on the analysis framework of neoclassical economic theory, this paper uses the constant elasticity of substitution production function to establish an urban–rural two-sector nested model that includes credit supply variables and analyzes the mechanism of rural credit input affecting the urban–rural income gap through labor transfer.
Details