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Assets, Activities and Income Generation in Rural Mexico: Factoring in social and public capital

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Author Info

  • Paul Winters
  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Leonardo Corral

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 incomegenerating 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 Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 02-05.

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Length: 36 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:fao:wpaper:0205

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Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
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Keywords: Livelihoods; Mexico; social capital; public capital; agricultural households; Censored regression.;

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References

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  1. 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.
  2. 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.
  3. Lanjouw, Peter, 2001. "Nonfarm Employment and Poverty in Rural El Salvador," World Development, Elsevier, vol. 29(3), pages 529-547, March.
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  5. 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.
  6. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966, September.
  7. 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.
  8. 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.
  9. 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.
  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.
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  12. 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.
  13. 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.
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Cited by:
  1. 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.
  2. Davis, Benjamin & Covarrubias, Katia & Stamoulis, Kostas G. & Winters, Paul C. & Carletto, Calogero & Quinones, Esteban & Zezza, Alberto & Di Giuseppe, Stefania, 2007. "Rural Income Generating Activities: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7913, European Association of Agricultural Economists.
  3. 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.
  4. 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.
  5. 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.
  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. 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.
  8. 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.
  9. 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).
  10. 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.
  11. 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).
  12. 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.
  13. 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.
  14. 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).
  15. 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).
  16. 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.
  17. 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.
  18. repec:hal:wpaper:halshs-00586227 is not listed on IDEAS
  19. 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.
  20. 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.
  21. 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.
  22. 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.

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