IDEAS home Printed from https://ideas.repec.org/a/ags/inijae/343361.html
   My bibliography  Save this article

Farm and Non-farm Sector Linkages and Future of Agriculture

Author

Listed:
  • Dev, S. Mahendra

Abstract

Agriculture development is crucial for raising incomes of population dependent on agriculture and for growth of non-agriculture. There are significant linkages between farm and non-farm sectors. The concept of ‘sectoral linkages’ was first introduced by Hirschman’s (1958) theory of ‘unbalanced growth’. He argued that the expansion of sectors with larger linkage measures can increase growth faster through their interdependence with other sectors than by alternative means. It is also pointed out that agriculture could not become a leading sector due to its weak backward linkages. In contrast to Hirschman’s views, Kalecki (1960) and Kuznets (1968) emphasise that agricultural development is essential for improving industrialisation. Lewis (1954) discusses the role of terms of trade in the context of agriculture-industrial linkages. According to him, increase in terms of trade in agriculture would reduce profits for industry. In contrast, Kaldor (1967) emphasises that rise in terms of trade for agriculture would improve demand for industrialisation. Johsnston and Mellor (1961) and Mellor (1976) discuss the importance of agriculture on nonagricultural sector. Later, studies by Mellor (1976), Liedholm and Kilby (1989), Ranis and Stewart (1993) stressed the importance of rural non-farm sector. Recent book by McMillan et al. (2017) examined structural change and focused on change in terms of shifting from low-productive to high-productive sectors and change in terms of raising human capital.

Suggested Citation

  • Dev, S. Mahendra, 2018. "Farm and Non-farm Sector Linkages and Future of Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 73(01), January.
    • Handle: RePEc:ags:inijae:343361
    DOI: 10.22004/ag.econ.343361
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/343361/files/Farm%20and%20Non-farm%20Sector%20Linkages.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.343361?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Datt,Gaurav & Ravallion,Martin & Murgai,Rinku, 2016. "Growth, urbanization, and poverty reduction in India," Policy Research Working Paper Series 7568, The World Bank.
    2. Saha, Partha & Verick, Sher., 2016. "State of rural labour markets in India," ILO Working Papers 994927490402676, International Labour Organization.
    3. Himanshu, & Jha, Praveen & Rodgers, Gerry (ed.), 2016. "The Changing Village in India: Insights from Longitudinal Research," OUP Catalogue, Oxford University Press, number 9780199461868.
    4. Ranis, Gustav & Stewart, Frances, 1993. "Rural nonagricultural activities in development : Theory and application," Journal of Development Economics, Elsevier, vol. 40(1), pages 75-101, February.
    5. Margaret McMillan & Dani Rodrik & Claudia Sepulveda, 2017. "Structural Change, Fundamentals and Growth: A Framework and Case Studies," NBER Working Papers 23378, National Bureau of Economic Research, Inc.
    6. Rao, N. Chandrasekhara & Sutradhar, Rajib & Reardon, Thomas, 2017. "Disruptive Innovations in Food Value Chains and Small Farmers in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 72(01), March.
    7. Carl Liedholm & Peter Kilby, 1989. "The Role of Nonfarm Activities in the Rural Economy," International Economic Association Series, in: Jeffrey G. Williamson & Vadiraj R. Panchamukhi (ed.), The Balance between Industry and Agriculture in Economic Development, chapter 16, pages 340-366, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dev, Mahendra, 2019. "Transformation of Indian Agriculture? Growth, Inclusiveness and Sustainability," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 74(01), March.
    2. S. Mahendra Dev, 2018. "Tranformation of Indian agriculture: Growth, iclusiveness and sustainability," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-026, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. S. Mahendra Dev, 2018. "Transformation of Indian Agriculture? Growth, Inclusiveness and Sustainability," Working Papers id:12955, eSocialSciences.
    4. Roehlano M. Briones, 2004. "Market Size, Differentiated Scale Economies and Interindustry Trade," International Trade 0412006, University Library of Munich, Germany.
    5. S. Mahendra Dev, 2018. "Labour Market Inequalities in India: Dimensions and Policies," Indian Journal of Human Development, , vol. 12(2), pages 217-235, August.
    6. S. Mahendra Dev, 2018. "Inequality, Employment and Public Policy," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(1), pages 1-42, March.
    7. Manoj Panda & Abhishek Kumar & William Joe, 2024. "Growth Matters? Revisiting the Enigma of Child Undernutrition in India," India Studies in Business and Economics, in: Probal Pratap Ghosh & Rajbans Talwar & Sureshbabu Syamasundar Velagapudi (ed.), Practical Economic Analysis and Computation, pages 285-307, Springer.
    8. Paula Bustos & Juan Manuel Castro Vincenzi & Joan Monras & Jacopo Ponticelli, 2019. "Structural Transformation, Industrial Specialization, and Endogenous Growth," Working Papers wp2019_1906, CEMFI.
    9. Kanó Izabella Szakálné & Vas Zsófia & Lengyel Imre & Sávai Marianna & Vida György, 2025. "Spatial Disparities in Economic Structural Change in Central and Eastern Europe During Integration," Intereconomics: Review of European Economic Policy, Sciendo, vol. 60(2), pages 126-134.
    10. Richard Grabowski, 2003. "Promoting industrialization: the role of the traditional sector and the state in East Asia," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(5), pages 587-605.
    11. Chandra S. R. Nuthalapati & Chaitanya Nuthalapati, 2021. "Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains," Circular Economy and Sustainability, Springer, vol. 1(4), pages 1207-1230, December.
    12. Kunling Zhang, 2021. "Economic Structural Transformation in Emerging Market Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(2), pages 216-238, May.
    13. Himanshu & Peter Lanjouw, 2020. "Income mobility in the developing world: Recent approaches and evidence," WIDER Working Paper Series wp-2020-7, World Institute for Development Economic Research (UNU-WIDER).
    14. Surbhi Kesar, 2023. "Economic transition, dualism and informality in India: Nature and patterns of household‐level transitions," Review of Development Economics, Wiley Blackwell, vol. 27(4), pages 2438-2469, November.
    15. Shantanu Khanna & Deepti Goel & René Morissette, 2016. "Decomposition analysis of earnings inequality in rural India: 2004–2012," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-26, December.
    16. Newman, Constance & Canagarajah, Sudharshan, 2000. "Gender, poverty, and nonfarm employment in Ghana and Uganda," Policy Research Working Paper Series 2367, The World Bank.
    17. World Bank Group, 2015. "Tanzania Mainland Poverty Assessment," World Bank Publications - Reports 22021, The World Bank Group.
    18. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    19. Sahel, Wissal & El Abbassi, Idriss, 2025. "Structural change in Morocco: Rethinking industrial policies," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 412-426.
    20. Mahabub Hossain, 2004. "Rural Non-Farm Economy in Bangladesh: A View from Household Surveys," CPD Working Paper 40, Centre for Policy Dialogue (CPD).

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:inijae:343361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/isaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.