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Rural non-farm development: a trade-theoretic view

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  • Kenneth Reinert

Abstract

A key component of rural development is the growth of production linkages between the farm and non-farm sectors. The growth of these linkages contributes to the development of agricultural clusters and to the increased articulation of the rural economy. This articulation process is modelled using a specific factors model with differentiated intermediate inputs or producer services produced under monopolistic competition. The implications of labour force growth, agricultural pricing policy, and import substitution industrialization policy on rural non-farm development are explored. The results suggest that agricultural clusters and the (dis)articulation of the farm and non-farm sectors are important aspects of rural development.

Suggested Citation

  • Kenneth Reinert, 1998. "Rural non-farm development: a trade-theoretic view," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(4), pages 425-437.
  • Handle: RePEc:taf:jitecd:v:7:y:1998:i:4:p:425-437
    DOI: 10.1080/09638199800000024
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    Citations

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    Cited by:

    1. Mathenge, Mary K. & Tschirley, David L., 2008. "Off-Farm Work and Farm Production Decisions: Evidence from Maize-Producing Households in Rural Kenya," Working Papers 202609, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    2. Vertica AGARWAL & Jean H.P. PAELINCK & Kenneth A. REINERT & Roger R. STOUGH, 2008. "Trade Liberalization and Income Inequality in India: A Poisson Distributed-Lag Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 187-192.
    3. Junior Davis & Dirk Bezemer, 2005. "Key emerging and conceptual issues in the development of the rural non-farm economy in developing countries and transition economies," Development and Comp Systems 0510017, EconWPA.

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