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Assets, activities and income generation in rural Mexico: factoring in social and public capital

  • Winters, Paul
  • Davis, Benjamin
  • Corral, Leonardo

In recent years, there has been increasing emphasis in the rural development literature on the multiple income-generating activities undertaken by rural households and the importance of assets in determining the capacity to undertake these activities. Controlling for endogeneity choice and applying Lee's generalization of Amemiya's two-step estimator to a simultaneous equation model, household returns to assets from multiple activities are explored for the Mexico ejido sector. To incorporate the multiple variables representing social and public capital into the analysis, factor analysis is used. The results indicate that the asset position of the household has a significant effect on household participation in income generating activities and returns to those activities. Furthermore, the inclusion of measures of social and public capital into the analysis show that these assets play an important role in income-generating activities and that the influence is dependent on the type of social and public capital as well as the particular activity.

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Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 27 (2002)
Issue (Month): 2 (August)
Pages: 139-156

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Handle: RePEc:eee:agecon:v:27:y:2002:i:2:p:139-156
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  1. Winters, Paul C. & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Family And Community Networks In Mexico-U.S. Migration," Working Papers 12907, University of New England, School of Economics.
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  7. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
  8. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966, March.
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