Non-farm rural activities in a peasant economy: the case of the North Peruvian Sierra
The paper investigates the prospects of a non-farm, labour-intensive, rural activity (hat making) with strong linkages to an agriculturally backward economy. Hat making employs exclusively family labour, the main input (straw, paja de palma) is purchased from Ecuador, and consumers are concentrated in villages and small towns in rural areas. Following the presentation of a simple theoretical model of the market for hats, attention turns to an empirical analysis of the demand for hats and of the labour returns in hat supply. Primary data from four villages of the Peruvian North Sierra have been used. Demand and supply constraints to the expansion of the hat making activity are identified and important differences in the value of labour's marginal product across the sample are found. It is concluded that growth based on local demand will not be feasible given falling incomes of consumers-mainly farmers-and expected changes in consumer preferences. The growth motor for non-farm rural activity will have to rely more on market expansion and product diversification to urban consumers. Copyright © 2005 John Wiley & Sons, Ltd.
Volume (Year): 18 (2006)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
- Ranis, Gustav & Stewart, Frances, 1993. "Rural nonagricultural activities in development : Theory and application," Journal of Development Economics, Elsevier, vol. 40(1), pages 75-101, February.
- Lanjouw, Jean O. & Lanjouw, Peter, 2001.
"The rural non-farm sector: issues and evidence from developing countries,"
Blackwell, vol. 26(1), pages 1-23, October.
- Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 26(1), October.
- Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
- Haggblade, Steven & Hazell, P. B. R. & Reardon, Thomas, 2002. "Strategies for stimulating poverty-alleviating growth in the rural nonfarm economy in developing countries:," EPTD discussion papers 92, International Food Policy Research Institute (IFPRI).
- Cramer, J S, 1973. "Interaction of Income and Price in Consumer Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 351-363, June.
- Efraín Gonzales de Olarte, 1996. "El Ajuste Estructural y los Campesinos," Libros de otras Editoriales, Departamento de Economía - Pontificia Universidad Católica del Perú, edition 1, number otr-1996-04, March.
- Hymer, Stephen H & Resnick, Stephen, 1969. "A Model of an Agrarian Economy with Nonagricultural Activities," American Economic Review, American Economic Association, vol. 59(4), pages 493-506, Part I Se. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:18:y:2006:i:2:p:207-221. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.