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Assets, Activities and Income Generation in Rural Mexico: Factoring in Social and Public Capital

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  • Winters, Paul C.
  • Davis, Benjamin
  • Corral, Leonardo

Abstract

In recent years, there has been increasing emphasis in the rural development literature on the multiple income-generating activities undertaken by rural households and the importance of assets in determining the capacity to undertake these activities. Controlling for endogeneity choice and applying Lee's generalization of Amemiya's two-step estimator to a simultaneous equation model, household returns to assets from multiple activities are explored for the Mexico ejido sector. To incorporate the multiple variables representing social and public capital into the analysis, factor analysis is used. The results indicate that the asset position of the household has a significant effect on household participation in income generating activities and returns to those activities. Furthermore, the inclusion of measures of social and public capital into the analysis show that these assets play an important role in income-generating activities and that the influence is dependent on the type of social and public capital as well as the particular activity.

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Bibliographic Info

Paper provided by University of New England, School of Economics in its series Working Papers with number 12898.

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Date of creation: 2001
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Handle: RePEc:ags:uneewp:12898

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Keywords: livelihoods; Mexico; social capital; public capital; agricultural households; censored regression; Community/Rural/Urban Development; Consumer/Household Economics; Labor and Human Capital;

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References

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  1. Winters, Paul C. & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Family And Community Networks In Mexico-U.S. Migration," Working Papers 12907, University of New England, School of Economics.
  2. Janvry, Alain de & Sadoulet, Elisabeth, 2001. "Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities," World Development, Elsevier, vol. 29(3), pages 467-480, March.
  3. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
  4. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
  5. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-97, July.
  6. Lanjouw, Peter, 2001. "Nonfarm Employment and Poverty in Rural El Salvador," World Development, Elsevier, vol. 29(3), pages 529-547, March.
  7. Lanjouw, Peter, 1999. "Rural Nonagricultural Employment and Poverty in Ecuador," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 91-122, October.
  8. Corral, Leonardo & Reardon, Thomas, 2001. "Rural Nonfarm Incomes in Nicaragua," World Development, Elsevier, vol. 29(3), pages 427-442, March.
  9. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," World Bank Research Observer, World Bank Group, vol. 15(2), pages 225-49, August.
  10. J. Edward Taylor & Antonio Yunez-Naude, 2000. "The Returns from Schooling in a Diversified Rural Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 287-297.
  11. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
  12. Jeffrey Kline & Dennis Wichelns, 1996. "Public Preferences Regarding the Goals of Farmland Preservation Programs," Land Economics, University of Wisconsin Press, vol. 72(4), pages 538-549.
  13. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
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Citations

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Cited by:
  1. Benjamin Davis & Paul Winters & Gero Carletto & Katia Covarrubias & Esteban Quinones & Alberto Zezza & Kostas Stamoulis & Genny Bonomi & Stefania DiGiuseppe, 2007. "Rural Income Generating Activities; A Cross Country Comparison," Working Papers 07-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  2. Schwarze, Stefan & Zeller, Manfred & Nuryartono, Nunung, 2006. "Income Sources, Poverty, and Forest Encroachment: Implications for Rural Development Policies in Central Sulawesi, Indonesia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25764, International Association of Agricultural Economists.
  3. Babulo, Bedru & Muys, Bart & Nega, Fredu & Tollens, Eric & Nyssen, Jan & Deckers, Jozef & Mathijs, Erik, 2008. "Household livelihood strategies and forest dependence in the highlands of Tigray, Northern Ethiopia," Agricultural Systems, Elsevier, vol. 98(2), pages 147-155, September.
  4. Francesca Marchetta, 2008. "Migration and non farm activities as income diversification strategies: the case of Northern Ghana," Working Papers - Economics wp2008_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  5. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Adoption of Soil Conservation Technologies in El Salvador: A cross-Section and Over-Time Analysis," OVE Working Papers 1806, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  6. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
  7. Brandon, Katrina & Gorenflo, Larry J. & Rodrigues, Ana S.L. & Waller, Robert W., 2005. "Reconciling biodiversity conservation, people, protected areas, and agricultural suitability in Mexico," World Development, Elsevier, vol. 33(9), pages 1403-1418, September.
  8. Siegel, Paul B., 2005. "Using an asset-based approach to identify drivers of sustainable rural growth and poverty reduction in Central America : a conceptual framework," Policy Research Working Paper Series 3475, The World Bank.
  9. Cocchi, Horacio & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2004. "Farm Benefits And Natural Resource Projects In Honduras And El Salvador," 2004 Annual meeting, August 1-4, Denver, CO 20328, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Wolz, Axel & Fritzsch, Jana & Buchenrieder, Gertrud & Nedoborovskyy, Andriy, 2008. "Market Integration of Household Plots in Ukraine - The Impact of Social Capital," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43842, European Association of Agricultural Economists.
  11. Raphael Nawrotzki & Fernando Riosmena & Lori Hunter, 2013. "Do Rainfall Deficits Predict U.S.-Bound Migration from Rural Mexico? Evidence from the Mexican Census," Population Research and Policy Review, Springer, vol. 32(1), pages 129-158, February.
  12. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
  13. Patrick, Ian & Marshall, Graham R. & Abdurrahman, Muktasam & Ambarawati, I Gusti Agung Ayu, 2006. "Determining the Role of Social Capital in Linking Smallholders with Agribusiness," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139890, Australian Agricultural and Resource Economics Society.
  14. Winters, Paul & Davis, Benjamin & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Azzarri, Carlo & Stamoulis, Kostas, 2009. "Assets, Activities and Rural Income Generation: Evidence from a Multicountry Analysis," World Development, Elsevier, vol. 37(9), pages 1435-1452, September.
  15. Coomes, Oliver T. & Barham, Bradford L. & Takasaki, Yoshito, 2004. "Targeting conservation-development initiatives in tropical forests: insights from analyses of rain forest use and economic reliance among Amazonian peasants," Ecological Economics, Elsevier, vol. 51(1-2), pages 47-64, November.
  16. Wolz, Axel & Fritzsch, Jana & Reinsberg, Klaus, 2005. "The Impact of Social Capital on Farm and Household Income: Results of a Survey among Individual Farmers in Poland," 94th Seminar, April 9-10, 2005, Ashford, UK 24442, European Association of Agricultural Economists.
  17. Stein Kristiansen, 2003. "Linkages and Rural Non-Farm Employment Creation: Changing Challenges and Policies in Indonesia," Working Papers 03-22, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  18. Olale, Edward & Nazli, Hina, 2010. "The Influence of Market Barriers and Farm Income Risk on Non-Farm Income Diversification," Annual Meeting, 2010, Denver Colorado, July 25-27 60915, Canadian Agricultural Economics Society.
  19. repec:hal:wpaper:halshs-00586227 is not listed on IDEAS
  20. World Bank, 2004. "Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Honduras Case Study, Volume 1. Executive Summary and Main Text," World Bank Other Operational Studies 14399, The World Bank.
  21. Winters, Paul C. & Corral, Leonardo & Gordillo, Gustavo, 2001. "Rural Livelihood Strategies and Social Capital in Latin America: Implications for Rural Development Projects," Working Papers 12947, University of New England, School of Economics.
  22. Jansen, Hans G.P. & Siegel, Paul B. & Pichón, Francisco, 2005. "Identifying the drivers of sustainable rural growth and poverty reduction in Honduras," DSGD discussion papers 19, International Food Policy Research Institute (IFPRI).

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