Rural economy and farm income diversification in developing countries
Farm-level diversification, the adoption of alternative income-generating activities by farm households, is rarely deemed an explicit objective by economists. Where agricultural transformation has occurred, markets function well and agriculture is a waning portion of overall national product, such as the rice growing regions of Southeast Asia, farm diversification might be a desirable outcome of pursuing a market liberalization objective, but is probably not an end in itself. In Sub-Saharan Africa, where these conditions often do not hold, development depends on pro-actively commercializing rural areas. African farmers tend to diversify their production activities widely to mitigate risk, but to only produce one or two exportable commodities. High transaction costs are common barriers to diversification into new export opportunities, especially for the poor and less well-informed, who tend to fall behind during times of rapid structural change. Identifying appropriate rural institutions to incorporate rural people into new export opportunities is a major priority for relevant policy research; contract farming and participatory cooperatives offer promise and merit further study.
|Date of creation:||1997|
|Contact details of provider:|| Postal: 1201 Eye Street, NW, Washington, DC 20005-3915|
Web page: http://www.ifpri.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June.
- Minot, Nicholas, 1986. "Contract Farming and Its Effect on Small Farmers in Less Developed Countries," Food Security International Development Working Papers 54740, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Staal, Steven & Delgado, Christopher & Nicholson, Charles, 1997. "Smallholder dairying under transactions costs in East Africa," World Development, Elsevier, vol. 25(5), pages 779-794, May.
- Reardon, Thomas & Matlon, Peter & Delgado, Christopher, 1988. "Coping with household-level food insecurity in drought-affected areas of Burkina Faso," World Development, Elsevier, vol. 16(9), pages 1065-1074, September.
- de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
- Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
- C. L. G. Bell & P. B. R. Hazell, 1980. "Measuring the Indirect Effects of an Agricultural Investment Project on Its Surrounding Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 75-86.
- Adams, Richard H. Jr. & He, Jane J., 1995. "Sources of income inequality and poverty in rural Pakistan:," Research reports 102, International Food Policy Research Institute (IFPRI).
- Craig L Infanger, 1993. "The Agrarian Origins of Commerce and Industry, A Study of Peasant Marketing in Indonesia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 35(2), pages 60-62, July.
- Rosegrant, Mark W. & Schleyer, Renato Gazmuri & Yadav, Satya N., 1995. "Water policy for efficient agricultural diversification: market-based approaches," Food Policy, Elsevier, vol. 20(3), pages 203-223, June.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Hare, Denise, 1994. "Rural nonagricultural activities and their impact on the distribution of income: Evidence from farm households in Southern China," China Economic Review, Elsevier, vol. 5(1), pages 59-82.
- Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
- Hossain, Mahabub, 1988. "Nature and impact of the Green Revolution in Bangladesh:," Research reports 67, International Food Policy Research Institute (IFPRI).
- Alderman, Harold & Garcia, Marito, 1993. "Poverty, household food security, and nutrition in rural Pakistan:," Research reports 96, International Food Policy Research Institute (IFPRI).