Paul Winters (American University Washington, DC USA) Timothy Essam (University of Maryland, MD USA) Benjamin Davis (Agricultural and Development Economics Division, Food and Agriculture Organization) Alberto Zezza (Agricultural and Development Economics Division, Food and Agriculture Organization) Calogero Carletto (World Bank Washington, DC, USA) Kostas Stamoulis (Agricultural and Development Economics Division, Food and Agriculture Organization)
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This article proposes a general pattern of rural development in which rises in per capita income are associated with a decline in the importance of agricultural production and a rise in the importance of non-agricultural income sources. Following the approach to examining Engel’s Law, we use data from 15 developing countries and a merged data set to test whether such a pattern emerges. The analysis shows a strong, positive relationship between rising per capita income and the share of income earned from rural non-agricultural activities and a negative relationship between per capita income and agricultural production.
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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
08-06.
Length: 36 pages Date of creation: 2008 Date of revision: Handle: RePEc:fao:wpaper:0806
Contact details of provider: Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy Phone: +39(6) 57051 Fax: +39 06 57055522 Email: Web page: http://www.fao.org/es/esa/ More information through EDIRC
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Find related papers by JEL classification: O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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).
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