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Rural nonfarm employment in developing countries in an era of globalization

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  • Thomas Reardon
  • Kostas Stamoulis
  • Prabhu Pingali

Abstract

Rural nonfarm employment (RNFE) has become a topic of major importance in rural development, as by the mid 2000s, RNFE constituted 35% of rural incomes in Africa and 50% in both Asia and Latin America. The traditional view of RNFE was a sleepy hinterland activity cut off from changes in the national, let alone the global economy. That view was assailed by sweeping changes in rural areas starting with the Green Revolution, then rur-urbanization, and lately, by globalization intervening via both trade and modernization of the national economy including the rise of modern retail and processing. In this article, we hypothesize and offer emerging evidence that the strongest and most positive effects on RNFE of globalization come in the zones that are rur-urbanized, with a tradeables growth-motor induced RNFE sector with clusters of small/medium enterprises for manufactures, and a preponderance of services. Surprisingly, the trade effects are least and the domestic market transformation effects are the strongest. The most challenges are posed for zones that are rur-urbanized and dense zone RNFE with low-moderate local growth motors. The least effects are on hinterland zones. The policy implications are to promote tradeables growth motors (key to creating RNFE in services, the major component of RNFE), and to incorporate "competitiveness"-in a changing urban and global economy-into RNFE promotion. Copyright 2007 International Association of Agricultural Economists.

Suggested Citation

  • Thomas Reardon & Kostas Stamoulis & Prabhu Pingali, 2007. "Rural nonfarm employment in developing countries in an era of globalization," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 173-183, December.
  • Handle: RePEc:bla:agecon:v:37:y:2007:i:s1:p:173-183
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    References listed on IDEAS

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    Cited by:

    1. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    2. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2013. "Branding and agricultural value chains in developing countries: Insights from Bihar (India)," Food Policy, Elsevier, vol. 38(C), pages 23-34.
    3. Keil, Alwin & Saint-Macary, Camille & Zeller, Manfred, 2011. "Agricultural Commercialization in the Uplands of Northern Vietnam: How to Achieve Both Poverty Reduction and Environmental Sustainability Goals?," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114487, German Association of Agricultural Economists (GEWISOLA).
    4. Tschirley, David & Reardon, Thomas, 2016. "Impact on Employment and Migration of Structural and Rural Transformation," Food Security International Development Working Papers 245895, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Gibson, John & Olivia, Susan, 2010. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," World Development, Elsevier, vol. 38(5), pages 717-726, May.
    6. Peter Richards & Tom Reardon & David Tschirley & Thom Jayne & Jim Oehmke & David Atwood, 2016. "Cities and the future of agriculture and food security: a policy and programmatic roundtable," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 871-877, August.
    7. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2011. "Branding in food retail of high value crops in Asia: Case of Makhana from Bihar (India)," MPRA Paper 54334, University Library of Munich, Germany, revised 31 Jan 2011.
    8. repec:dau:papers:123456789/11399 is not listed on IDEAS
    9. Smale, Melinda & Kusunose, Yoko & Mathenge, Mary K. & Alia, Didier, 2014. "Destination or Distraction? Querying the Linkage between Off-farm Income and Farm Investments in Kenya," Food Security International Development Working Papers 196829, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2010. "The makhana value chain and the fast emergence of branding in food retail: Evidence from Bihar (India)," MPRA Paper 54344, University Library of Munich, Germany, revised 14 Jan 2010.
    11. Rodríguez-Pose, Andrés & Hardy, Daniel, 2015. "Addressing poverty and inequality in the rural economy from a global perspective," LSE Research Online Documents on Economics 63257, London School of Economics and Political Science, LSE Library.
    12. Keil, Alwin & Saint-Macary, Camille & Zeller, Manfred, 0. "Intensive Commercial Agriculture in Fragile Uplands of Vietnam: How to Harness its Poverty Reduction Potential while Ensuring Environmental Sustainability?," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.
    13. Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI).
    14. Mathenge, Mary K. & Smale, Melinda & Opiyo, Joseph, 2013. "Off-farm Work and Fertilizer Intensification among Smallholder Farmers in Kenya: A Cross-Crop Comparison," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150638, Agricultural and Applied Economics Association.
    15. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2011. "The rapid emergence of branding in food retail in Asia: Insights from Bihar (India)," MPRA Paper 54337, University Library of Munich, Germany, revised 14 Jan 2011.
    16. Smale, Melinda & Mathenge, Mary K. & Opiyo, Joseph, 2015. "Nonfarm Work and Fertilizer Use Among Smallholder Farmers in Kenya: A Cross-Crop Comparison," Working Papers 206441, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    17. Claudia Bouroncle & Pablo Imbach & Beatriz Rodríguez-Sánchez & Claudia Medellín & Armando Martinez-Valle & Peter Läderach, 2017. "Mapping climate change adaptive capacity and vulnerability of smallholder agricultural livelihoods in Central America: ranking and descriptive approaches to support adaptation strategies," Climatic Change, Springer, vol. 141(1), pages 123-137, March.
    18. Vimefall, Elin, 2015. "Income diversification among female-headed farming households," Working Papers 2015:11, Örebro University, School of Business.
    19. Anriquez, Gustavo & Stamoulis, Kostas G., 2007. "Rural Development and Poverty Reduction: Is Agriculture Still Key?," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 4(1).
    20. Hallie Eakin & Hugo Perales & Kirsten Appendini & Stuart Sweeney, 2014. "Selling Maize in Mexico: The Persistence of Peasant Farming in an Era of Global Markets," Development and Change, International Institute of Social Studies, vol. 45(1), pages 133-155, January.
    21. Diiro, Gracious M. & Ker, Alan P. & San, Abdul G., 2015. "The role of gender in fertiliser adoption in Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(2), June.

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