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Rural Non-farm Development in China and India: The Role of Policies and Institutions

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  • Mukherjee, Anit
  • Zhang, Xiaobo

Abstract

The dynamic rural nonfarm sector in China has been a major contributor to the country’s remarkable growth, while in India the growth in output and employment in this sector has been rather stagnant. The paper argues that the observed patterns in the rural nonfarm development are the results of institutional differences between the two countries, especially in their political systems, ownership structure, and credit institutions. A review of the strengths and weaknesses of the rural nonfarm economy in China and India highlights the potentials and challenges of growth in the sector.

Suggested Citation

  • Mukherjee, Anit & Zhang, Xiaobo, 2005. "Rural Non-farm Development in China and India: The Role of Policies and Institutions," DSGD Discussion Papers 58387, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:dsgddp:58387
    DOI: 10.22004/ag.econ.58387
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    1. is not listed on IDEAS
    2. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program," Impact assessments 31, International Food Policy Research Institute (IFPRI).
    3. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    4. Emran,M. Shahe & Sun,Yan - GSP05, 2015. "Are the children of uneducated farmers doubly disadvantaged ? farm, nonfarm and intergenerational educational mobility in rural China," Policy Research Working Paper Series 7459, The World Bank.
    5. Hoang, Trung X. & Pham, Cong S. & Ulubaşoğlu, Mehmet A., 2014. "Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008," World Development, Elsevier, vol. 64(C), pages 554-568.
    6. Khandker, Shahidur R. & Samad, Hussain A. & Ali, Rubaba, 2013. "Does access to finance matter in microenterprise growth ? evidence from Bangladesh," Policy Research Working Paper Series 6333, The World Bank.
    7. Emran, M. Shahe & Sun, Yan, 2014. "Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China," MPRA Paper 59230, University Library of Munich, Germany.
    8. Zhao, Xiaoxue, 2020. "Land and labor allocation under communal tenure: Theory and evidence from China," Journal of Development Economics, Elsevier, vol. 147(C).

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