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The Effect of Infrastructure Access and Quality on Non-farm Employment and Income in Rural Indonesia

Author

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  • Olivia, Susan
  • Gibson, John

Abstract

There is growing interest in the rural non-farm sector in developing countries as a contributor to economic growth, employment generation, livelihood diversification and poverty reduction. Access to infrastructure is identified in some studies as a factor that affects non-farm rural employment and income but less attention has been paid to the constraints imposed by poor quality infrastructure. In this paper we use data from 4000 households in rural Indonesia to show that the quality of two key types of infrastructure – roads and electricity – affects both employment in and income from non-farm enterprises. It appears that there would be gains from development strategies that improve both the access to and the quality of rural infrastructure.

Suggested Citation

  • Olivia, Susan & Gibson, John, 2008. "The Effect of Infrastructure Access and Quality on Non-farm Employment and Income in Rural Indonesia," 2009 Conference, August 16-22, 2009, Beijing, China 49919, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:49919
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    File URL: http://purl.umn.edu/49919
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    References listed on IDEAS

    as
    1. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    2. Alberto Isgut, 2004. "Non-farm Income and Employment in Rural Honduras: Assessing the Role of Locational Factors," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 59-86.
    3. Gibson, John & Rozelle, Scott, 2003. "Poverty and Access to Roads in Papua New Guinea," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 159-185, October.
    4. Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas, 2009. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," Issue briefs 58, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Infrastructure; Non-farm employment; Indonesia; Public Economics; H54; 017;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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