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1 – 10 of over 1000Shreya 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.
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Paul Kwame Nkegbe, Abdelkrim Araar, Benjamin Musah Abu, Yazidu Ustarz, Hamdiyah Alhassan, Edinam Dope Setsoafia and Shamsia Abdul-Wahab
Ghana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural…
Abstract
Purpose
Ghana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural farming households from poverty have been narrowed to the promotion of agricultural development to the neglect of the rural non-farm sector. However, this is fast changing in the advent of a burgeoning rural nonfarm economy and must engage the attention of policy actors. This study thus assesses the effect of non-farm participation on households' level of commercialization of agricultural crops in Ghana.
Design/methodology/approach
The study applies a generalized structural equation model (GSEM) to the Ghana Living Standards Survey round 6 dataset, a stratified and nationally representative random sample of 16,772 households in 1,200 enumeration areas.
Findings
This study finds that non-farm participation increases the produce sold to output ratio. It is concluded that non-farm engagement by farmers boosts commercialization in Ghana. Thus, for the Ghanaian and similar contexts, agricultural development interventions that incorporate non-farm activities are more likely to be successful in improving livelihoods.
Research limitations/implications
The study uses only the ratio of sales value to output value definition for commercialization and acknowledges use of multiple definitions could be superior.
Originality/value
Various empirical studies have examined the link between the farm and nonfarm sectors. This paper is original in its approach as it tackles an aspect of the subject that has been understudied, namely, an exploration of nonfarm and farm linkages from the perspective of agricultural commercialization.
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Dina Modestus Nziku and John Struthers
Rural farm and non-farm based entrepreneurial activities within Sub-Saharan Africa (SSA) play significant roles in job creation as well as food security for the majority of rural…
Abstract
Rural farm and non-farm based entrepreneurial activities within Sub-Saharan Africa (SSA) play significant roles in job creation as well as food security for the majority of rural dwelling citizens (UNCTAD, 2018). This chapter examines the policies and strategies for supporting both farm and non-farm entrepreneurial activities within rural communities in SSA. In order to achieve this, the authors have completed a systematic literature review of both conceptual and empirical work on the role of policies and strategies for rural entrepreneurship in selected SSA, namely Ethiopia, Rwanda, Sierra Leone, and the United Republic of Tanzania (URT). This was completed alongside an assessment of the constraints and potential opportunities in order to stimulate linkages between rural entrepreneurship and structural economic transformation including the potential roles of both farm and non-farm based entrepreneurial activities. Key linkages between rural farm and non-farm based entrepreneurial activities are emphasised The chapter also highlights mechanisms through which governments and private sectors can work together for the maximisation of available opportunities and best practices that rural entrepreneurship can offer for job creation among rural communities in SSA.
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This paper aims to study the different factors that determine the performance or success of small-scale, non-farm enterprises in Lesotho. Evidence shows that small-scale…
Abstract
Purpose
This paper aims to study the different factors that determine the performance or success of small-scale, non-farm enterprises in Lesotho. Evidence shows that small-scale enterprises in developing countries are confronted with different challenges and problems that make them less viable. As a result, the capacity of small-scale, non-farm enterprises in employment creation, income generation and providing the means of livelihood to the poor people is not significant. In Lesotho, many people who are retrenched from the South African mines are absorbed in small-scale, non-farm enterprises to make a living. However, small-scale enterprises are faced with different challenges. The research findings suggest that factors leading to success/performance of rural non-farm enterprises in Lesotho include gender of the entrepreneur, age of the entrepreneur, ability of the entrepreneur to establish wider social networks, large population/market, availability of communication networks and infrastructure, participation of enterprises in the international market and costs of doing business and competition. In this regard, the paper makes policy recommendations that can be used to improve performance/success of small-scale, non-farm enterprises.
Design/methodology/approach
This research uses both qualitative and quantitative research methods to analyse data.
Findings
The main finding of the research is that foreign competition hinders the success of non-farm enterprises in Lesotho. The research findings further reveal that enterprises owned by women make the highest turnover compared to those owned by men.
Practical implications
This study brings in different factors that can ensure or hinder success/performance of small-scale, rural non-enterprises.
Originality/value
The research paper is of value in that it is the first study in Lesotho that considers different factors that determine business success in relation to employment creation, turnover and profitability.
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Precious Makhosazana Tshabalala and Shaufique Fahmi Sidique
This study aims to analyze the factors that determine non-farm enterprise diversification among farm households in Ethiopia. It extends the analysis by examining enterprises and…
Abstract
Purpose
This study aims to analyze the factors that determine non-farm enterprise diversification among farm households in Ethiopia. It extends the analysis by examining enterprises and using pooled data, which has the capacity to generate more accurate outcomes. The existing empirical evidence has focused on all non-farm activities, based on single period, single region data. Much of the existing empirical evidence is based on small-scale and location-specific sample surveys that do not demonstrate the characteristics of aggregate populations.
Design/methodology/approach
The empirical analysis was conducted using a quantitative method. To cater to the censoring nature of participating in non-farm enterprise activities, a panel data double-hurdle model is used to a representative sample of 3,594 Ethiopian rural households.
Findings
The study finds that the age of household head, household size, distance to the market, social capital and access to credit, are determinants for owning one or more non-farm enterprises. The level of income from these enterprises is then determined by the age and education level of the household head, household size, agricultural equipment, distance to markets and access to credit.
Practical implications
This study brings to light factors that influence households to participate in non-farm enterprises and the determining factors for the income level.
Originality/value
Non-farm activities are an important source of household income and a driver of development. This paper provides empirical evidence on factors that determine enterprise ownership using panel data.
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Siti Badariah Saiful Nathan and M. Mohd Rosli
The purpose of this paper is to identify the structure of household income and examine the effects of non-farm incomes on the income distribution of farm households in a…
Abstract
Purpose
The purpose of this paper is to identify the structure of household income and examine the effects of non-farm incomes on the income distribution of farm households in a relatively developed rural area of the Malaysian rice bowl.
Design/methodology/approach
The non-farm incomes were disaggregated into different components to determine the contribution of each income source to total household income and overall inequality. The income distribution and decomposition was examined using the Gini decomposition method.
Findings
It was found that almost 71 percent of the households in the sample had at least one source of non-farm income. On average, non-farm incomes contributed about 33 percent to total household income. Non-farm wage employment was the dominant source of non-farm income, accounting for almost 26 percent of overall household income. The farm incomes, especially the paddy incomes were found to be the inequality-decreasing income source. The study also confirmed the proposition that the non-farm incomes were the inequality-increasing income source as they contributed up to 35 percent of the overall income inequality.
Originality/value
Previous studies have found that non-farm incomes have different effects on income inequality of rural communities, especially those in the rice granary areas situated in less developed states of Malaysia, where poverty is still a problem. This study is significant because it identifies the effect of certain incomes on the overall income inequality among farm households in the granary areas located in a relatively developed rural area. The studied areas are characterized by an intensive paddy production and a rapid development in business and industrial activities, and hence, providing non-farm employment opportunities to the rural farmers. Therefore, this study shows the income structure and how farm and non-farm incomes affect the overall income distribution of the paddy farmers.
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Thong Le Pham, Nghiem Tan Le, Nhi Nhat Phuong Ho and Thanh Cong Le
This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.
Abstract
Purpose
This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.
Design/methodology/approach
The present paper applies the “recentered influence functions (RIF)” in “Oaxaca-Blinder (OB)” type decomposition as proposed by Firpo et al. (2018) to allow for the flexible distribution of the outcome variables and the non-randomness of non-farm employment that violates the classical linearity assumption.
Findings
Non-farm households have significantly higher per capita consumption expenditure than farm households for the entire distribution. The gap in expenditure is large at low percentiles and narrowing with higher percentiles. At 10th percentile, the gap is estimated at 27.1%, but it is decreasing to 11.1% at 90th percentile. Most of the gaps are explained by the differences in the observed characteristics between farm and non-farm households such as ethnicity, education, income, internal transmittances and household composition. Non-farm households are endowed with more productive factors that result in higher per capita consumption expenditure.
Originality/value
Gaps in ethnicity and education are found to be key predictors of the inequality in consumption expenditures between farm and non-farm households, then, government policies that are aimed at increasing access to non-farm employment and education for ethnic minorities and for rural poor households are pathways to improve rural household welfare and hence reduce inequality.
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This study investigates how income from non-farm activities affects households' consumption in two land holders' groups: households with insecure land holding and households with…
Abstract
Purpose
This study investigates how income from non-farm activities affects households' consumption in two land holders' groups: households with insecure land holding and households with secure land holding.
Design/methodology/approach
Following an instrumental variable approach, this study analyzes data collected on a nationwide sample of 1,800 households in rural Burkina Faso.
Findings
For insecure land holders' group, this study finds that income from non-farm activities has a positive effect on household consumption per capita. Moreover, the share of household food consumption is negatively associated with non-farm income in this group. For secure land holders' group, the results show that non-farm income has only a negative effect on the share of their food consumption.
Originality/value
The study highlights the livelihood sustaining role of non-farm activities for rural households. Unlike previous studies, the results show that non-farm income is particularly important for land tenure insecure households facing risk of losing agricultural income.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0423
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This chapter examines changes in smallholder agriculture in terms of processes of de-agrarianization in a rapidly changing regional economy of Costa Rica long characterized by…
Abstract
Purpose
This chapter examines changes in smallholder agriculture in terms of processes of de-agrarianization in a rapidly changing regional economy of Costa Rica long characterized by small-scale commercial coffee farming.
Methodology
The study is based on multiple periods (1990–1991, 1993, 2006, 2010–2012) of ethnographic research on household economic strategies among farming families in two districts in the canton of Pérez Zeledón, Costa Rica.
Findings
Though occupational multiplicity and non-farm-based livelihoods are on the rise, smallholder agriculture continues to play a substantial role in the livelihood strategies of both young and old and in the regional economy, not in spite of these trends, but because an expanding business sector and an increase in non-farm employment opportunities are creating a demand for agricultural produce and providing new opportunities for smallholders to diversify agricultural production, stabilize their incomes and maintain a significant presence in the regional economy. Specific historic conditions and state policies have been important factors in shaping rural economic change, livelihood strategies and smallholder agriculture in this region.
Research limitations
Sample sizes are relatively small and some data on children’s economic activities were obtained second hand from siblings and/or parents.
Implications
This research has implications for policy makers, planners and social activists interested in agrarian change.
Originality/value
This research provides an important longitudinal lens on the economic strategies of farming households, processes of de-agrarianization and the persistence of small-scale family farmers in today’s world.
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This paper examines the determinants of participation in non-farm activities in rural Sudan. It also investigates whether the factors that influence participation in non-farm…
Abstract
Purpose
This paper examines the determinants of participation in non-farm activities in rural Sudan. It also investigates whether the factors that influence participation in non-farm activities vary across agriculture sub-sectors.
Design/methodology/approach
The study adopts the multinomial logit and probit methods on labour supply participation theory using the Sudanese National Baseline Household Survey (2009). The analysis was applied across job types and agriculture sub-sectors.
Findings
The results indicated that educational level, means of transportation, lack of land and access to formal agricultural credit are the most significant factors that push rural farmers to participate in non-farm activities. Surprisingly, the effect of household income was positive and significant, implying that individuals from rich households have higher opportunity to engage in non-farm activities compared to their poor counterparts. The results also revealed some variations in the factors that influence participation in non-farm activities according to the agricultural sub-sectors.
Originality/value
The originality of this article lies in investigating the factors that influence participation in non-farm activities across irrigated and rainfed systems. To the best of our knowledge, this is the first study identifying the determinants of participation in non-farm activities across agriculture sub-sectors. Therefore, the paper fills an important gap in the literature and helps in designing appropriate pro-poor policies to allocate infrastructures across irrigated and rainfed areas in Sudan.
Peer review
The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-02-2022-0092.
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