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Non-Farm Entrepreneurship of Farmers in West Bengal: A LISREL/Logit Analysis

Author

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  • Subrata Dutta

    (Budget Analysis Rajasthan Centre (BARC), Jaipur, Rajasthan, India)

Abstract

For rural industrial growth, substantial amount of investment is required in the non-farm business sector. In a predominantly agrarian economy, such investment may have a possibility to come from the landowning farmers. In other words, growth of rural industrial activities depends, to a large extent, on resource transfer from agriculture to non-agriculture, and such transfer is largely dependent on farmers’ attitude towards non-farm entrepreneurship. In this context, this study seeks to identify the determinants of non-farm entrepreneurship among farmers. West Bengal has experienced a relatively high agricultural growth in the last two decades. But, in the present study, wealthy farmer has been found to be less likely to become non-farm entrepreneur. The government needs to undertake necessary measures in order to attract the wealthy group of farmers towards the realm of non-farm manufacturing sector. In addition to wealth, the other variables like age of farmer, farmer’s marital status, financial family support, marriage relationship with non-farm business family, fate/work-effort, and attitude towards risk have been found to be important determinants.

Suggested Citation

  • Subrata Dutta, 2007. "Non-Farm Entrepreneurship of Farmers in West Bengal: A LISREL/Logit Analysis," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 42(2), pages 231-253, July.
  • Handle: RePEc:dse:indecr:v:42:y:2007:i:2:p:231-253
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    Keywords

    Rural non-farm entrepreneurship; rural industrialisation; LISREL; logit model; West Bengal;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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