Income diversification and the rural non-farm economy
Income diversification and the rural non-farm economy

Author: Paudel, Susan

Publisher: Intl Food Policy Res Inst

Published: 2022-11-30

Total Pages: 28

ISBN-13:

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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

Author: D.J Bezemer

Publisher:

Published: 2005

Total Pages: 0

ISBN-13:

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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

Author: Junior R. Davis

Publisher:

Published: 2014

Total Pages: 0

ISBN-13:

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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

Author: Abate, Gashaw Tadesse

Publisher: Intl Food Policy Res Inst

Published: 2022-12-06

Total Pages: 5

ISBN-13:

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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.

Rural Non-farm Employment
Rural Non-farm Employment

Author: P. Purushotham

Publisher:

Published: 2004

Total Pages: 342

ISBN-13:

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

Transforming the Rural Nonfarm Economy
Transforming the Rural Nonfarm Economy

Author: Steven Haggblade

Publisher: Intl Food Policy Res Inst

Published: 2007-11-16

Total Pages: 514

ISBN-13: 0801886643

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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 in Armenia
The Rural Non-Farm Economy in Armenia

Author: D.J Bezemer

Publisher:

Published: 2005

Total Pages: 0

ISBN-13:

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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 Armenia. The main aim of this paper is to improve understanding of the dynamics of the RNFE in providing employment and income diversification opportunities in Armenia.

The Rural Non-Farm Economy in Romania
The Rural Non-Farm Economy in Romania

Author: D.J Bezemer

Publisher:

Published: 2005

Total Pages: 0

ISBN-13:

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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 Romania. The main aim of this paper is to improve understanding of the dynamics of the RNFE in providing employment and income diversification opportunities in Romania.