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Patterns of Rural Development: A Cross-Country Comparison using Microeconomic Data

Author

Listed:
  • Paul Winters
  • Timothy Essam
  • Alberto Zezza
  • Benjamin Davis
  • Calogero Carletto

Abstract

This article proposes a general pattern of rural development in which increases 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 dataset to test whether such a pattern emerges. The analysis shows a strong, positive relationship between per capita income and the share of income earned from rural non-agricultural wage employment and a negative relationship between per capita income and agricultural production. Copyright (c) 2010 The Authors. Journal compilation (c) 2010 The Agricultural Economics Society.

Suggested Citation

  • Paul Winters & Timothy Essam & Alberto Zezza & Benjamin Davis & Calogero Carletto, 2010. "Patterns of Rural Development: A Cross-Country Comparison using Microeconomic Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 628-651.
  • Handle: RePEc:bla:jageco:v:61:y:2010:i:3:p:628-651
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    References listed on IDEAS

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    1. Zezza, Alberto & Winters, Paul C. & Davis, Benjamin & Carletto, Calogero & Covarrubias, Katia & Quinones, Esteban & Stamoulis, Kostas G. & Di Giuseppe, Stefania, 2007. "Rural Household Access to Assets and Agrarian Institutions: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7925, European Association of Agricultural Economists.
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    Citations

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    Cited by:

    1. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    2. Davis, Benjamin & Di Giuseppe, Stefania & Zezza, Alberto, 2014. "Income diversification patterns in rural Sub-Saharan Africa : reassessing the evidence," Policy Research Working Paper Series 7108, The World Bank.
    3. Binswanger-Mkhize, Hans P. & Johnson, Timothy & Samboko, Paul Chimuka & You, Liangzhi, 2016. "The impact of urban growth on agricultural and rural non-farm growth in Kenya," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249274, African Association of Agricultural Economists (AAAE).
    4. Fałkowski, Jan, 2016. "Promoting change or preserving the status quo? - the consequences of dominating local politics by agricultural interests. Some evidence on structural change in Poland during the transition period," 149th Seminar, October 27-28, 2016, Rennes, France 245115, European Association of Agricultural Economists.
    5. Sharma, Govinda Prasad & Pandit, Ram & White, Ben & Polyakov, Maksym, 2015. "The Income Diversification Strategies of Smallholder Coffee Producers in Nepal," Working Papers 207693, University of Western Australia, School of Agricultural and Resource Economics.
    6. D'Amico, Mario & Coppola, Adele & Chinnici, Gaetano & Di Vita, Giuseppe & Pappalardo, Gioacchino, 2012. "EU Agricultural Systems in the new CAP perspectives," 126th Seminar, June 27-29, 2012, Capri, Italy 126116, European Association of Agricultural Economists.
    7. Ugo Pica-Ciamarra & Luca Tasciotti & Joachim Otte & Alberto Zezza, 2015. "Livestock in the Household Economy: Cross-Country Evidence from Microeconomic Data," Development Policy Review, Overseas Development Institute, vol. 33(1), pages 61-81, January.
    8. Headey, Derek, 2011. "Was the Global Food Crisis Really a Crisis?: Simulations versus Self-Reporting," Research briefs 17, International Food Policy Research Institute (IFPRI).
    9. Marco Stampini & Benjamin Davis, 2009. "Does nonagricultural labor relax farmers' credit constraints? Evidence from longitudinal data for Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 177-188, March.
    10. Asif Z. Warsi & Muhammad Shujaat Mubarik, 2015. "Determinants of agricultural production: A Cross-country Sensitivity analysis," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 9(2), pages 32-42, Fall.
    11. Davis, Benjamin & Di Giuseppe, Stefania & Zezza, Alberto, 2017. "Are African households (not) leaving agriculture? Patterns of households’ income sources in rural Sub-Saharan Africa," Food Policy, Elsevier, vol. 67(C), pages 153-174.
    12. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    13. Tran, Tuyen & Vu, Huong, 2013. "Farmland loss, nonfarm diversification and inequality: A micro-econometric analysis of household surveys in Vietnam," MPRA Paper 47596, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O57 - Economic Development, Innovation, 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

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