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Patterns of rural development: a cross-country comparison using microeconomic data

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  • Winters, Paul
  • Essam, Timothy
  • Davis, Benjamin
  • Zezza, Alberto
  • Carletto, Calogero
  • Stamoulis, Kostas

Abstract

This article proposes a general pattern of rural development in which rises in per capita income are associated with a decline in the importance of agricultural production and a rise in the importance of non-agricultural income sources. Following the approach to examining Engel's Law, we use data from 15 developing countries and a merged data set to test whether such a pattern emerges. The analysis shows a strong, positive relationship between rising per capita income and the share of income earned from rural non-agricultural activities and a negative relationship between per capita income and agricultural production.

Suggested Citation

  • Winters, Paul & Essam, Timothy & Davis, Benjamin & Zezza, Alberto & Carletto, Calogero & Stamoulis, Kostas, 2008. "Patterns of rural development: a cross-country comparison using microeconomic data," ESA Working Papers 289028, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    • Handle: RePEc:ags:faoaes:289028
    DOI: 10.22004/ag.econ.289028
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    More about this item

    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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