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Microeconomic analysis of rural nonfarm activities in the Kyrgyz Republic: What determines participation and returns?

Author

Listed:
  • Atamanov, Aziz

    (Maastricht Graduate School of Governance, Maastricht University)

  • Van den Berg, Marrit

    (Dept. of Development Economics, Wageningen University)

Abstract

This paper uses two representative household budget surveys from the Kyrgyz Republic to analyze factors influencing participation and returns from different types of nonfarm activities in 2005 and 2006. Nonfarm activities are found to be most important for the poor, who are pushed out of agriculture due to limited and poor land resources. We also show that different nonfarm activities have different human capital requirements. Unlike other studies, we use the double hurdle model which allows us to demonstrate that a number of variables have different effects on participation and income from nonfarm activities. For example, residing in remote areas and lack of capital are found to stimulate participation in nonfarm activities, but decrease nonfarm income. Overall, the empirical analysis confirms the importance of rural nonfarm activities and indicates that equipping poor households to enable them to move towards better remunerative nonfarm activities should be a priority for Kyrgyz rural policy makers.

Suggested Citation

  • Atamanov, Aziz & Van den Berg, Marrit, 2011. "Microeconomic analysis of rural nonfarm activities in the Kyrgyz Republic: What determines participation and returns?," MERIT Working Papers 2011-011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2011011
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    File URL: https://www.merit.unu.edu/publications/wppdf/2011/wp2011-011.pdf
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    References listed on IDEAS

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    Cited by:

    1. Franziska Gassmann, 2011. "Protecting Vulnerable Families in Central Asia: Poverty, vulnerability and the impact of the economic crisis," Papers inwopa639, Innocenti Working Papers.

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    More about this item

    Keywords

    nonfarm activities; rural areas; Kyrgyz Republic; household income; nonfarm income; rural policy; public policy;
    All these keywords.

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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