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The Effects of Non-Farm Enterprises on Farm Households’ Income and Consumption Expenditure in Rural India

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  • Zeeshan
  • Mohapatra, Geetilaxmi
  • Kumar Giri, Arun

Abstract

Nationally representative data of farm households from India Human Development Surveys (IHDS) conducted in 2004-05 and 2011-12 are explored. This article analyzes the effects of income diversification in non-farm enterprises on farm households’ income and consumption expenditure in rural India. Panel probit models were built to examine the determinants of income diversification while propensity score matching was used to account selection bias resulting from unobserved factors and controls for structural differences between diversified and undiversified farm households. The results suggest that by engaging in non-farm enterprises, rural farm households make positive gains in farm income and consumption expenditure.

Suggested Citation

  • Zeeshan & Mohapatra, Geetilaxmi & Kumar Giri, Arun, 2019. "The Effects of Non-Farm Enterprises on Farm Households’ Income and Consumption Expenditure in Rural India," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 19(01), June.
    • Handle: RePEc:ags:earnsa:290540
    DOI: 10.22004/ag.econ.290540
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    1. Dewi Sahara & Joko Triastono & Raden Heru Praptana & Anggi Sahru Romdon & Forita Dyah Arianti & Sugeng Widodo & Arlyna Budi Pustika & Heni Purwaningsih & Andi Yulyani Fadwiwati & Sutardi & Muslimin & , 2023. "Sorghum Contribution to Increased Income and Welfare of Dryland Farmer Households in Wonogiri, Indonesia," Agriculture, MDPI, vol. 13(8), pages 1-17, August.

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    Keywords

    Productivity Analysis;

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