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Key Constraints for Rural Non-Farm Activity in Tanzania: Combining Investment Climate and Household Surveys

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  • Songqing Jin
  • Klaus Deininger

Abstract

We use a survey of small rural enterprises from Tanzania to identify subjective as well as objective obstacles to expansion and productivity of the country's rural non-farm sector. Our results suggest that infrastructure constraints significantly reduce participation in the sector and investment and productivity by existing enterprises. Such constraints are particularly harmful for small enterprises, suggesting that policies to improve delivery of key public services can provide a basis for rural non-farm development, with possible knock-on effects on poverty reduction. Copyright 2009 The author 2008. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Songqing Jin & Klaus Deininger, 2009. "Key Constraints for Rural Non-Farm Activity in Tanzania: Combining Investment Climate and Household Surveys," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(2), pages 319-361, March.
  • Handle: RePEc:oup:jafrec:v:18:y:2009:i:2:p:319-361
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    File URL: http://hdl.handle.net/10.1093/jae/ejn016
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    Cited by:

    1. Rijkers, Bob & Söderbom, Måns, 2013. "The Effects of Risk and Shocks on Non-Farm Enterprise Development in Rural Ethiopia," World Development, Elsevier, vol. 45(C), pages 119-136.
    2. Rijkers, Bob & Söderbom, Måns & Loening, Josef L., 2010. "A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia," World Development, Elsevier, vol. 38(9), pages 1278-1296, September.
    3. Kweka, Josaphat & Fox, Louise, 2011. "The household enterprise sector in Tanzania : why it matters and who cares," Policy Research Working Paper Series 5882, The World Bank.
    4. Rijkers, Bob & Costa, Rita, 2012. "Gender and Rural Non-Farm Entrepreneurship," World Development, Elsevier, vol. 40(12), pages 2411-2426.

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