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Determinants of Farmers Participation in Off-Farm Employment: A Case Study in Kedah Darul Aman, Malaysia

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Author Info

  • Roslan ABDUL-HAKIM

    ()
    (Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia 06010 UUM Sintok, Kedah Darul Aman MALAYSIA)

  • Siti Hadijah CHE-MAT

    ()
    (Department of Economics and Agribusiness School of Economics, Finance and Banking, Universiti Utara Malaysia 06010 UUM Sintok, Kedah Darul Aman MALAYSIA)

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    Abstract

    This paper investigates the determinants of agricultural households’ participation in off-farm employment. Towards this end, a logit model is employed to identify factors that determine the participation in off-farm employment. Here, determinants of participation in off-farm employment are divided into four categories – individual, household, farm and local area characteristics. With regards to the local area characteristics, the analysis is extended by including a new variable, which is the economic characteristic of the area. The results of the analysis show that the main determinants that influence the farmer’s decision to participate in off-farm employment are age, gender, household size, dependency ratio, remittance, land size, types of agricultural activities, working hours allocated to the farm, the ratio of income from agricultural sources in total income of the farmer. Furthermore, this study uncovers that the economic characteristic of the area where the farmer reside is important determinant of the farmer’s decision to participate in off-farm job. One of the policy implications from the finding of this study is that, if the agricultural households are to be encouraged to participate in off-farm jobs, a balanced development in the rural areas must be pursued.

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    Bibliographic Info

    Article provided by Asian Economic and Social Society in its journal Asian Journal of Agriculture and rural Development.

    Volume (Year): 1 (2011)
    Issue (Month): 2 (December)
    Pages: 27-37

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    Handle: RePEc:asi:ajosrd:2011:p:27-37

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    Related research

    Keywords: Determinants; farmers participation; off-farm employment; Malaysia;

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    References

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    1. Chinn, Dennis L, 1979. "Rural Poverty and the Structure of Farm Household Income in Developing Countries: Evidence from Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 27(2), pages 283-301, January.
    2. Bagamba, Fred & Burger, Kees & Kuyvenhoven, Arie, 2009. "Determinant of smallholder farmer labor allocation decisions in Uganda:," IFPRI discussion papers 887, International Food Policy Research Institute (IFPRI).
    3. Junior Davis, 2005. "The rural non-farm economy, Livelihoods and their," Development and Comp Systems 0510016, EconWPA.
    4. A Corsi & JL Findeis, 2000. "True state dependence and heterogeneity in off-farm labour participation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 127-151, June.
    5. Abdulai, Awudu & CroleRees, Anna, 2001. "Determinants of income diversification amongst rural households in Southern Mali," Food Policy, Elsevier, vol. 26(4), pages 437-452, August.
    6. Lim-Applegate, Hazel & Rodriguez, Gil & Olfert, M. Rose, 2002. "Determinants of non-farm labour participation rates among farmers in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), March.
    7. Wayne Howard & Michael Swidinsky, 2000. "Estimating the Off-farm Labor Supply in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(1), pages 1-14, 03.
    8. Huffman, Wallace & Lange, Mark D., 1989. "Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making," Staff General Research Papers 10986, Iowa State University, Department of Economics.
    9. Matshe, Innocent & Young, Trevor, 2004. "Off-farm labour allocation decisions in small-scale rural households in Zimbabwe," Agricultural Economics, Blackwell, vol. 30(3), pages 175-186, May.
    10. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
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