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The agricultural input elasticity of rural-urban migration in South Africa

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  • Asfaha, T.A.
  • Jooste, Andre
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    Abstract

    The pace of rural-urban migration relative to urban job creation is of particular relevance in relation to the level of urban unemployment and poverty in many developing countries. Faced with high levels of urban unemployment and other socio-economic problems governments in developing countries adopted several policies to ameliorate the situation. Since such policies were mainly urban biased in nature it not only failed in most cases but also in some instance exacerbated the situation by stimulating more rural-urban migration. Rural-urban migration occurs where there is economic disparity between rural and urban areas. Some economists therefore, argue that boosting agricultural productivity and/ or income can reduce the incidence of economic problems partially posed by rural-urban migration. In this paper, an attempt is made, using a recursive equation system and a South African data set for the period 1965-2002, to measure the indirect agricultural input elasticity of rural-urban migration. The results indicate that narrowing the urban-rural income differentials can reduce the massive rural-urban migration and high urban unemployment in the country. It is furthermore shown that developing agricultural land and infrastructure and increasing fertilizer use can boost agricultural income, reduce rural-urban migration and is consistent with policies aimed at curbing urban unemployment.

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    File URL: http://purl.umn.edu/31736
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    Bibliographic Info

    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 45 (2006)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:agreko:31736

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    Web page: http://www.aeasa.org.za/
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    Keywords: Labor and Human Capital;

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    1. Hazans, Mihails, 2003. "Determinants of inter-regional migration in the Baltic countries," ZEI Working Papers B 17-2003, ZEI - Center for European Integration Studies, University of Bonn.
    2. Prabir C. Bhattacharya, 2002. "Rural-to-urban migration in LDCS: a test of two rival models," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 951-972.
    3. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
    4. Goldsmith, Peter D. & Gunjal, Kisan & Ndarishikanye, Barnabe, 2004. "Rural-urban migration and agricultural productivity: the case of Senegal," Agricultural Economics, Blackwell, vol. 31(1), pages 33-45, July.
    5. Hanson, James A, 1971. "Employment and Rural Wages in Egypt: A Reinterpretation," American Economic Review, American Economic Association, vol. 61(3), pages 492-99, June.
    6. Mundlak, Yair & Larson, Don & Butzer, Ritz, 1997. "The determinants of agricultural production : a cross-country analysis," Policy Research Working Paper Series 1827, The World Bank.
    7. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
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