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Commercialization of agriculture in the Himalayas

  • Rahut, Dil Bahadur
  • Velásquez Castellanos, Iván
  • Sahoo, Pravakar

Increased market integration and commercialization of traditional agriculture in the Himalayas is part of a development strategy towards growth and better standard of living. More than 97 percent households depend upon agricultural and allied activities for livelihood which constitutes 30 percent of the household income. Given the importance of commercialization of agriculture to improve the productivity, per capita income and thereby the standard of living in the Himalayas, we examine the factors affecting the commercialization of agriculture on the basis of primary survey data. The results reveal that the land size, gender of the household head, livestock assets, ethnicity, education and location are important determinants of commercialization. Although commercialization of agriculture is considered as stimulated private-sector activity, public policy is essential to facilitate driving forces viz., trade and market reforms, rural infrastructure, and the institutional framework for legal and contractual arrangements between farmers and processors.

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Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 265.

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Date of creation: Dec 2010
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Publication status: Published in IDE Discussion Paper. No. 265. 2010.12
Handle: RePEc:jet:dpaper:dpaper265
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  1. Strasberg, Paul J. & Jayne, Thomas S. & Yamano, Takashi & Nyoro, James K. & Karanja, Daniel David & Strauss, John, 1999. "Effects of Agricultural Commercialization on Food Crop Input Use and Productivity in Kenya," Food Security International Development Policy Syntheses 11463, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Jayne, Thomas S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David L. & Benfica, Rui M.S. & Chapoto, Antony & Zulu, Ballard & Neven, David, 2002. "Smallholder Income and Land Distribution in Africa: Implications for Poverty Reduction Strategies," Food Security International Development Policy Syntheses 11295, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Stephan J. Goetz, 1992. "A Selectivity Model of Household Food Marketing Behavior in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 444-452.
  4. Haggblade, Steven & Hazell, Peter & Brown, James, 1989. "Farm-nonfarm linkages in rural sub-Saharan Africa," World Development, Elsevier, vol. 17(8), pages 1173-1201, August.
  5. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966, December.
  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  7. Rahut, Dil Bahadur & Micevska, Maja B., 2007. "Rural Nonfarm Employment and Incomes in the Eastern Himalayas," Proceedings of the German Development Economics Conference, Göttingen 2007 22, Verein für Socialpolitik, Research Committee Development Economics.
  8. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
  9. von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
  10. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302.
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