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Economic Development and the Decline of Agricultural Employment

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  • Foster, Andrew D.
  • Rosenzweig, Mark R.

Abstract

This chapter considers the linkages between agricultural development and rural non-farm activities. The chapter is motivated by growing evidence that non-farm activities provide an increasingly important share of rural incomes in many low-income questions, questions about whether increasing agricultural productivity is a necessary precondition for raising incomes and reducing poverty in rural areas, and increased evidence of factor and commodity flows between rural and urban areas. Unfortunately, the existing literature is sparse and has not been sufficiently attentive to the underlying structures and mechanisms that drive the relationship between agricultural productivity and rural non-farm change. A particular weakness of this literature is the lack of attention given to the importance of flows of both capital and labor. The reason for this is in part due to the limitations of existing data. An assessment of the strengths and weaknesses of existing data sets is thus also provided, with particular attention to panel data sets that might be useful for assessing the extent of geographic mobility. In order to clarify the relevant issues the Chapter presents a model of the rural economy that permits examination of the linkages between agricultural development and non-farm employment under different regimes distinguished by the mobility of capita and labor. Basic features of the model are then tested using newly available data from South Asia. The Chapter concludes with suggestions for future data collection efforts as well as the development of more sophisticated models of the rural economy.

Suggested Citation

  • Foster, Andrew D. & Rosenzweig, Mark R., 2008. "Economic Development and the Decline of Agricultural Employment," Handbook of Development Economics, Elsevier.
  • Handle: RePEc:eee:devchp:5-47
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    References listed on IDEAS

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    Cited by:

    1. Martine AUDIBERT, 2008. "Endemic diseases and agricultural productivity: Challenges and policy response," Working Papers 200823, CERDI.
    2. Akresh, Richard & Edmonds, Eric V., 2010. "The Analytical Returns to Measuring a Detailed Household Roster," IZA Discussion Papers 4759, Institute for the Study of Labor (IZA).
    3. Guy Michaels & Ferdinand Rauch & Stephen J. Redding, 2012. "Urbanization and Structural Transformation," The Quarterly Journal of Economics, Oxford University Press, vol. 127(2), pages 535-586.
    4. Fuwa, Nobuhiko & Balisacan, Arsenio M. & Mapa, Dennis & Abad Santos, Carlos & Piza, Sharon Faye, 2012. "Sectoral Growth Linkages and the Role of Infrastructure Development: Revisiting the sources of nonfarm development in the rural Philippines," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126456, International Association of Agricultural Economists.
    5. Valerie Mueller & Abusaleh Shariff, 2011. "Preliminary Evidence On Internal Migration, Remittances, And Teen Schooling In India," Contemporary Economic Policy, Western Economic Association International, vol. 29(2), pages 207-217, April.
    6. Abhijit V. Banerjee & Esther Duflo, 2008. "What Is Middle Class about the Middle Classes around the World?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 3-28, Spring.
    7. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    8. Xing, Chunbing, 2009. "Migration, Self-selection, and Income Distributions: Evidence from Rural and Urban China," MPRA Paper 17036, University Library of Munich, Germany.
    9. Ram Fishman & Meha Jain & Avinash Kishore, 2013. "Patterns of Migration, Water Scarcity and Caste in Rural Northern Gujarat," Working Papers id:5400, eSocialSciences.
    10. Diane Coffey & John Papp & Dean Spears, 2015. "Short-Term Labor Migration from Rural North India: Evidence from New Survey Data," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(3), pages 361-380, June.
    11. repec:spr:ssefpa:v:10:y:2018:i:4:d:10.1007_s12571-018-0788-1 is not listed on IDEAS
    12. Liu, Yanyan & Yamauchi, Futoshi, 2014. "Population density, migration, and the returns to human capital and land: Insights from Indonesia," Food Policy, Elsevier, vol. 48(C), pages 182-193.
    13. Jonasson, Erik & Helfand, Steven M., 2010. "How Important are Locational Characteristics for Rural Non-agricultural Employment? Lessons from Brazil," World Development, Elsevier, vol. 38(5), pages 727-741, May.
    14. de Brauw, Alan & Mueller, Valerie & Lee, Hak Lim, 2014. "The Role of Rural–Urban Migration in the Structural Transformation of Sub-Saharan Africa," World Development, Elsevier, vol. 63(C), pages 33-42.
    15. Andrea Ascani & Simona Iammarino, 2017. "Multinational enterprises, service outsourcing and regional structural change," Papers in Evolutionary Economic Geography (PEEG) 1724, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.

    More about this item

    Keywords

    non-farm; rural; migration; development;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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