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Rural non-farm livelihoods in transition economies: emerging issues and policies

  • Junior Davis

    (NRI, UK)

This article reviews key conceptual issues related to the development of the rural non-farm economy (RNFE) in a transition context and analyses available empirical evidence on the role of RNFE during recovery from the transition recession. Growth in the RNFE in the transition countries took place during the recession transition, which shows that it may be distress driven, but the paper explores other factors which may be driving the RNFE. It looks at the RNFE in light of the factors driving income growth and inequality, i.e. endowments and institutions. It concludes that, although not uniform across transition countries, the RNFE should be seen as a component of a growth strategy rather than as a temporary “refuge” or survival one. The patterns of growth of the RNFE will closely follow those of general economic recovery as well as the developments in the agricultural sector itself.

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Article provided by Food and Agriculture Organization of the United Nations in its journal The Electronic Journal of Agricultural and Development Economics.

Volume (Year): 3 (2006)
Issue (Month): 2 ()
Pages: 180-224

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Handle: RePEc:fao:tejade:v:3:y:2006:i:2:p:180-224
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  1. Junior Davis & Angela Gaburici, 2005. "Non-farm employment in small-scale enterprises in Romania: policy and development issues," Development and Comp Systems 0510019, EconWPA.
  2. Johan F. M. Swinnen & Ayo Heinegg, 2002. "On the political economy of land reforms in the former Soviet Union," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 1019-1031.
  3. Macours, Karen & Swinnen, Johan F M, 2002. "Patterns of Agrarian Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 365-94, January.
  4. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
  5. Balcombe, K. G. & Davis, J. R., 1996. "An application of cointegration theory in the estimation of the almost ideal demand system for food consumption in Bulgaria," Agricultural Economics, Blackwell, vol. 15(1), pages 47-60, September.
  6. Woldehanna, Tassew & Lansink, Alfons Oude & Peerlings, Jack, 2000. "Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(2), March.
  7. Csaki, S. & Nash, J., 1998. "The Agrarian Economies of Central and Eastern Europe and the Commonwealth of Independent States. Situation and Perspectives, 1997," World Bank - Discussion Papers 387, World Bank.
  8. Bryden, John Marshall & Bollman, Ray D., 2000. "Rural employment in industrialised countries," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(2), March.
  9. Bryden, John & Bollman, Ray, 2000. "Rural employment in industrialised countries," Agricultural Economics, Blackwell, vol. 22(2), pages 185-197, March.
  10. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 305-29, August.
  11. Franz Heidues & Junior R. Davis & Gertrud Schrieder, 1997. "Agricultural Transformation and Implications for Designing Rural Financial Policies in Romania," CERT Discussion Papers 9722, Centre for Economic Reform and Transformation, Heriot Watt University.
  12. Thomas Reardon & J. Edward Taylor & Kostas Stamoulis & Peter Lanjouw & Arsenio Balisacan, 2000. "Effects of Non-Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 266-288.
  13. 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.
  14. Lerman, Z. & Brooks, K. & Csaki, C., 1994. "Land Reform and Fram Restructuring in Ukraine," World Bank - Discussion Papers 270, World Bank.
  15. Woldehanna, Tassew & Lansink, Alfons Oude & Peerlings, Jack, 2000. "Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms," Agricultural Economics, Blackwell, vol. 22(2), pages 163-171, March.
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