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Rural Non-farm Sector in Bangladesh : Stagnating and Residual, or Dynamic and Potential ?

Author

Listed:
  • Sen , Binayak

    (Research Director, Bangladesh Institute of Development Studies (BIDS))

Abstract

The new piece of evidence culled from household expenditure surveys of BBS as well as 62-village panel surveys of BIDS indicates that the expansion of the rural non-farm sector (RNF) during the period since early eighties through mid-nineties can no longer be viewed as the persistence of a "residual" sector phenomenon. Such characterisation, if true, would have predicted declining output and higher incidence of poverty in this sector. The evidence presented in the paper suggests that the shift to non-farm occupations has been, on balance, pro-poor in nature. This is seen both in terms of greater potentials for poverty alleviation in these activities, and in respect of their potentials for moderating overall rural income inequality. The other view, favouring a "dynamic" characterisation, is also found to be wanting in that it fails to recognize the lack of improvement in labour productivity in many RNF activities— and the consequent overcrowding at the lower end of the productivity scale— affecting the long-term sustainability of the sector.

Suggested Citation

  • Sen , Binayak, 1996. "Rural Non-farm Sector in Bangladesh : Stagnating and Residual, or Dynamic and Potential ?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 24(3-4), pages 143-180, Sept-Dec.
    • Handle: RePEc:ris:badest:0364
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    Citations

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    Cited by:

    1. M. Niaz Asadullah, 2012. "Intergenerational Wealth Mobility in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(9), pages 1193-1208, September.
    2. Khandker, Shahidur R. & Samad, Hussain A. & Ali, Rubaba, 2013. "Does access to finance matter in microenterprise growth ? evidence from Bangladesh," Policy Research Working Paper Series 6333, The World Bank.
    3. G. M. Arif & Hina Nazli & Rashida Haq, 2000. "Rural Non-agriculture Employment and Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 1089-1110.
    4. Ahmed, Mansur & Goodwin, Barry, "undated". "Agricultural Mechanization and Non-Farm Labor Supply of Farm Households: Evidence from Bangladesh," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236131, Agricultural and Applied Economics Association.
    5. Malek, Mohammad Abdul & Kikkawa, Aiko & Azad, Abul Kalam & Sawada, Yasuyuki, 2022. "Rural Development in Bangladesh Over Four Decades: Findings from Mahabub Hossain Panel Data and the Way Forward," ADBI Working Papers 1350, Asian Development Bank Institute.
    6. Sen, Binayak & Dorosh, Paul & Ahmed, Mansur, 2021. "Moving out of agriculture in Bangladesh: The role of farm, non-farm and mixed households," World Development, Elsevier, vol. 144(C).

    More about this item

    Keywords

    Rural poverty; Crop income; Sustainable agriculture; Development studies; Livestock farms; Agroforestry; Trade; Labor productivity;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines

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