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Destination or Distraction? Querying the Linkage Between Off-Farm Work and Food Crop Investments in Kenya

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  • Melinda Smale
  • Yoko Kusunose
  • Mary K. Mathenge
  • Didier Alia

Abstract

The relationship between off-farm work and farm input use in Sub-Saharan Africa has been documented, although results are mixed concerning the direction of effect. Here, we explore the robustness of this linkage by applying a range of econometric models to panel data collected in Kenya, using maize as an example because of its importance as a major food crop among smallholder farmers. We test the relationship between rates of fertilizer use and three types of off-farm earnings (labour on other farms, known as farm kibarua); income from self-employment and informal businesses and earnings from regular employment (salaries, pensions or wages). Consistent with previous research, we find a strong, negative linkage between non-farm work and rates of fertiliser use in maize production, indicating trade-offs in labour allocation and farm investments. However, the relationship between fertiliser use in maize production and earnings from farm kibarua appears to be positive, illustrating the role this type of work can play in easing cash constraints for destitute households. Adding to previous research, model comparisons illustrate the sensitivity of some estimated parameters to modelling assumptions. Further, the application of the general propensity score matching demonstrates that the magnitude of the marginal effects of non-farm income on fertiliser use rates varies as income changes. In the case of non-farm earnings, the response of fertiliser to additional income is negative at lower income levels, but positive at higher levels.

Suggested Citation

  • Melinda Smale & Yoko Kusunose & Mary K. Mathenge & Didier Alia, 2016. "Destination or Distraction? Querying the Linkage Between Off-Farm Work and Food Crop Investments in Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 25(3), pages 388-417.
    • Handle: RePEc:oup:jafrec:v:25:y:2016:i:3:p:388-417.
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    File URL: http://hdl.handle.net/10.1093/jae/ejv032
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    Citations

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    Cited by:

    1. Van Hoyweghen, K. & Van Den Broeck, G. & Maertens, M., 2018. "Understanding the importance of off-farm employment for rural development: Evidence from Senegal," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275888, International Association of Agricultural Economists.
    2. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    3. Alia, Didier Y. & Wineman, Ayala Y. & Anderson, C. Leigh, 2020. "Development Assistance and Factor Markets In Nigeria: An Application of the Test of Agricultural Household Separability," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304474, Agricultural and Applied Economics Association.
    4. Paul Nkegbe & Abdelkrim Araar & Benjamin Abu & Yazidu Ustarz & Hamdiyah Alhassan & Edinam Dope Setsoafia & Shamsia Abdul-Wahab, 2018. "Rural Non-Farm Engagement and Agriculture Commercialization in Ghana: Complements or Competitors?," Working Papers PMMA 2018-07, PEP-PMMA.
    5. Sènakpon F. A. Dedehouanou & John McPeak, 2018. "Diversify more or less? Household resilience and food security in rural Nigeria," Working Papers PMMA 2018-01, PEP-PMMA.
    6. Kaat Van Hoyweghen & Goedele Van den Broeck & Miet Maertens, 2020. "Employment Dynamics and Linkages in the Rural Economy: Insights from Senegal," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 904-928, September.
    7. Paul Kwame Nkegbe & Abdelkrim Araar & Benjamin Musah Abu & Hamdiyah Alhassan & Yazidu Ustarz & Edinam Dope Setsoafia & Shamsia Abdul-Wahab, 2022. "Nonfarm activity and market participation by farmers in Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-23, December.
    8. Hayatullah Ahmadzai, 2017. "Status, patterns, and microeconomic drivers of the extent of diversity in crop production: Evidence from Afghanistan," Discussion Papers 2017-07, University of Nottingham, CREDIT.
    9. Dedehouanou, Sènakpon Fidèle Ange & Araar, Abdelkrim & Ousseini, Aichatou & Harouna, Abdoulaziz Laouali & Jabir, Maimounata, 2018. "Spillovers from off-farm self-employment opportunities in rural Niger," World Development, Elsevier, vol. 105(C), pages 428-442.

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