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The Nonfarm Sector And Rural Development: Review Of Issues And Evidence

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  • Islam, Nurul

Abstract

In most developing countries, the rural labor force is growing rapidly, but employment opportunities are not keeping pace. As land available for expansion of agriculture becomes increasingly scarce, nonfarm employment must expand if deepening rural poverty is to be avoided. Policymakers and analysts alike look to the nonfarm sector to increase rural employment, contribute to economic growth, improve income distribution, and alleviate poverty. Expanding opportunities in rural areas outside of agriculture also may help stem the migration of rural dwellers to the cities and slow the spread of urban congestion and pollution. At any feasible pace of growth of large-scale industrialization, urban industries are unlikely to absorb the rapidly increasing labor force. Therefore, it is up to the more labor-intensive rural nonfarm sector to absorb excess labor, promote economic growth, and diversify income sources.
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Suggested Citation

  • Islam, Nurul, 1997. "The Nonfarm Sector And Rural Development: Review Of Issues And Evidence," 2020 Briefs 16361, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:ifp20b:16361
    DOI: 10.22004/ag.econ.16361
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    1. is not listed on IDEAS
    2. Dil Bahadur Rahut & Akhter Ali & Menale Kassie & Paswel P. Marenya & Chudamani Basnet, 2014. "Rural Livelihood Diversification Strategies in Nepal," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 259-281, September.
    3. Obare, G. A. & Omamo, S. W. & Williams, J. C., 2003. "Smallholder production structure and rural roads in Africa: the case of Nakuru District, Kenya," Agricultural Economics, Blackwell, vol. 28(3), pages 245-254, May.
    4. repec:zbw:ifwkie:4250 is not listed on IDEAS
    5. Shadab Hashmi, 2025. "Determinants of rural livelihood diversification in Uttar Pradesh: recent developments and changes," SN Business & Economics, Springer, vol. 5(6), pages 1-32, June.
    6. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    7. Tatiana Tikhonova & Olga Shik, 2008. "Alternative Employment in Rural Area in Russia," Research Paper Series, Gaidar Institute for Economic Policy, issue 114P, pages 224-224.
    8. Nong Zhu & Xubei Luo, 2014. "The Impact of migration on rural poverty and inequality: a case study in China," CIRANO Working Papers 2014s-08, CIRANO.
    9. Lay, Jann & M'Mukaria, George Michuki & Omar Mahmoud, Toman, 2007. "Boda-bodas rule: Non-agricultural activities and their inequality implications in Western Kenya," Open Access Publications from Kiel Institute for the World Economy 6543, Kiel Institute for the World Economy (IfW Kiel).
    10. Zhu, Nong & Luo, Xubei, 2008. "The impact of remittances on rural poverty and inequality in China," Policy Research Working Paper Series 4637, The World Bank.
    11. Dil Bahadur Rahut & Khondoker Abdul Mottaleb & Akhter Ali, 2018. "Rural Livelihood Diversification Strategies and Household Welfare in Bhutan," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(4), pages 718-748, September.
    12. Elena SIMA, 2020. "Rural Development Through Non-Agricultural Activities In Romania," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 17(2), pages 237-251.
    13. Riithi, Alexander Njuguna & Irungu, Patrick & Munei , Kimpei, "undated". "Determinants Of Choice Of Alternative Livelihood Diversification Strategies In Solio Resettlement Scheme, Kenya," Dissertations and Theses 269714, University of Nairobi, Department of Agricultural Economics.
    14. Ranjan, Sharad, 2006. "Occupational Diversification And Access To Rural Employment: Revisiting The Non Farm Employment Debate," MPRA Paper 7870, University Library of Munich, Germany.
    15. Zhu, Nong & Luo, Xubei, 2006. "Nonfarm activity and rural income inequality : a case study of two provinces in China," Policy Research Working Paper Series 3811, The World Bank.
    16. Armida Alisjahbana & Chris Manning, 2007. "Trends and Constraints Associated with Labor Faced by Non-Farm Enterprises," Working Papers in Economics and Development Studies (WoPEDS) 200711, Department of Economics, Padjadjaran University, revised Oct 2007.
    17. Nong Zhu & Xubei Luo, 2010. "The impact of migration on rural poverty and inequality: a case study in China," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 191-204, March.
    18. Lay, Jann & Mahmoud, Toman Omar & M'Mukaria, George Michuki, 2008. "Few Opportunities, Much Desperation: The Dichotomy of Non-Agricultural Activities and Inequality in Western Kenya," World Development, Elsevier, vol. 36(12), pages 2713-2732, December.
    19. Sheryl Hendriks & Michael Lyne, 2003. "Agricultural growth multipliers for two communal areas of KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 20(3), pages 423-444.
    20. Unai Pascual & Edward Barbier, 2005. "On- and off-farm labor decisions by slash-and-burn farmers in Yucatan (Mexico)," Environmental Economy and Policy Research Working Papers 06.2005, University of Cambridge, Department of Land Economics, revised 2005.
    21. Jackeline Velazco & Vicente Pinilla, 2012. "Peasant households' acces to land and income diversification. The Peruvian-andean case 1998-2000," Documentos de Trabajo de la Sociedad de Estudios de Historia Agraria 1205, Sociedad de Estudios de Historia Agraria.
    22. Riithi, A.N. & Maina, J.M., 2015. "Determinants of Participation in the Nonfarm Sector in a Conflict-Based Resettlement Scheme," 2015 Conference, August 9-14, 2015, Milan, Italy 212694, International Association of Agricultural Economists.
    23. Lay, Jann & Schüler, Dana, 2008. "Income Diversification and Poverty in a Growing Agricultural Economy: The Case of Ghana," Proceedings of the German Development Economics Conference, Zurich 2008 39, Verein für Socialpolitik, Research Committee Development Economics.
    24. Kumar Bhaumik, Sankar, 2007. "Diversification of Employment and Earnings by Rural Households in West Bengal," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 62(4), pages 1-22.
    25. Ademar Ribeiro Romeiro, 2001. "Développement économique et agriculture familiale au Brésil," Revue Tiers Monde, Programme National Persée, vol. 42(167), pages 633-655.

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