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Rural - urban growth linkages in India

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  • Hazell, Peter B.
  • Haggblade, Steven

Abstract

The rural nonfarm economy accounts for one-quarter of all full-time employment in rural India and for nearly one-third of rural income, and is also intimately linked to agriculture. This paper examines the importance of rural-urban growth linkages in India, and aims to assess the impact of agricultural growth on national demand for nonfarm products. In addition, because growing land scarcity raises concerns about prospects for rural labor absorption, the paper highlights the impact of agricultural growth on rural nonfarm incomes and employment.Four major sections address these objectives. The first provides a descriptive overview of nonfarm activity in India. It examines the importance, composition and location of nonfarm activity as well as general trends over the past 30 years. The second explores the relationship between agriculture and changes in nonfarm activity. After reviewing previous growth linkage studies, it compares nonfarm activity in high- and low-productivity agricultural states cross-sectionally and over time. The third section estimates the volume of rural nonfarm income and employment generated by agricultural growth, while the fourth projects patterns of demand for nonfarm goods emanating from alternative agricultural growth scenarios.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 430.

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Date of creation: 31 May 1990
Date of revision:
Handle: RePEc:wbk:wbrwps:430

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Related research

Keywords: Environmental Economics&Policies; Economic Theory&Research; Achieving Shared Growth; Governance Indicators; Agricultural Knowledge&Information Systems;

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Citations

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Cited by:
  1. Falkowski, Jan & Jakubowski, Maciej & Strawinski, Pawel, 2013. "Returns from Income Strategies in Rural Poland," Factor Markets Working Papers 178, Centre for European Policy Studies.
  2. Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
  3. Fan, Shenggen & Jitsuchon, Somchai & Methakunnavut, Nuntaporn, 2004. "The importance of public investment for reducing rural poverty in middle-income countries," DSGD discussion papers 7, International Food Policy Research Institute (IFPRI).
  4. Mariapia Mendola, 2003. "Agricultural Technology and Povertry Reduction: A Micro-Level Analysis of Causal Effects," Development Working Papers 179, Centro Studi Luca d\'Agliano, University of Milano.
  5. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI).
  6. Prasada Mecharla, 2002. "The Determinants of Rural Non-Farm Employment in Two Villages of Andhra Pradesh (India)," PRUS Working Papers 12, Poverty Research Unit at Sussex, University of Sussex.
  7. Luca Tiberti & Marco Tiberti, 2012. "Rural Policies and Poverty in Tanzania: an Agricultural Household Model-Based Assessment," Cahiers de recherche 1229, CIRPEE.
  8. Abraham, Vinoj, 2011. "Agrarian distress and rural non-farm sector employment in India," MPRA Paper 35275, University Library of Munich, Germany.
  9. Lanjouw, Peter & Shariff, Abusaleh, 2002. "Rural non farm employment in India : Access, income and poverty impact," Working Papers 81, National Council of Applied Economic Research.
  10. Lanjouw, Jean O. & Lanjouw, Peter, 1995. "Rural nonfarm employment : a survey," Policy Research Working Paper Series 1463, The World Bank.
  11. Das Gupta, Monica & Grandvoinnet, Helene & Romani, Mattia, 2000. "State-community synergies in development : laying the basis for collective action," Policy Research Working Paper Series 2439, The World Bank.
  12. Ranjan, Sharad, 2006. "Occupational Diversification And Access To Rural Employment: Revisiting The Non Farm Employment Debate," MPRA Paper 7870, University Library of Munich, Germany.
  13. McCulloch, Neil, 2003. "The impact of structural reforms on poverty : a simple methodology with extensions," Policy Research Working Paper Series 3124, The World Bank.
  14. 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.
  15. Deichmann, Uwe & Shilpi, Forhad & Vakis, Renos, 2009. "Urban Proximity, Agricultural Potential and Rural Non-farm Employment: Evidence from Bangladesh," World Development, Elsevier, vol. 37(3), pages 645-660, March.
  16. Islam, Nurul, 1997. "The nonfarm sector and rural development: review of issues and evidence," 2020 vision discussion papers 22, International Food Policy Research Institute (IFPRI).
  17. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).

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