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Rural - urban growth linkages in India

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  • Hazell, Peter B.
  • Haggblade, Steven

Abstract

The rural nonfarm economy accounts for one-quarter of all full-time employment in rural India and for nearly one-third of rural income, and is also intimately linked to agriculture. This paper examines the importance of rural-urban growth linkages in India, and aims to assess the impact of agricultural growth on national demand for nonfarm products. In addition, because growing land scarcity raises concerns about prospects for rural labor absorption, the paper highlights the impact of agricultural growth on rural nonfarm incomes and employment.Four major sections address these objectives. The first provides a descriptive overview of nonfarm activity in India. It examines the importance, composition and location of nonfarm activity as well as general trends over the past 30 years. The second explores the relationship between agriculture and changes in nonfarm activity. After reviewing previous growth linkage studies, it compares nonfarm activity in high- and low-productivity agricultural states cross-sectionally and over time. The third section estimates the volume of rural nonfarm income and employment generated by agricultural growth, while the fourth projects patterns of demand for nonfarm goods emanating from alternative agricultural growth scenarios.

Suggested Citation

  • Hazell, Peter B. & Haggblade, Steven, 1990. "Rural - urban growth linkages in India," Policy Research Working Paper Series 430, The World Bank.
  • Handle: RePEc:wbk:wbrwps:430
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    Citations

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    Cited by:

    1. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI).
    2. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    3. Das Gupta, Monica & Grandvoinnet, Helene & Romani, Mattia, 2000. "State-community synergies in development : laying the basis for collective action," Policy Research Working Paper Series 2439, The World Bank.
    4. Luca Tiberti & Marco Tiberti, 2015. "Rural Policies, Price Change and Poverty in Tanzania: An Agricultural Household Model-Based Assessment," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 24(2), pages 193-229.
    5. Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
    6. McCulloch, Neil, 2003. "The impact of structural reforms on poverty : a simple methodology with extensions," Policy Research Working Paper Series 3124, The World Bank.
    7. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    8. Prasada Mecharla, 2002. "The Determinants of Rural Non-Farm Employment in Two Villages of Andhra Pradesh (India)," PRUS Working Papers 12, Poverty Research Unit at Sussex, University of Sussex.
    9. Peter Lanjouw & Abusaleh Shariff & Dil Bahadur Rahut, 2007. "Rural Non-Farm Employment in India: Access, Income, Farm, Poverty Impact," Working Papers id:913, eSocialSciences.
    10. Ranjan, Sharad, 2006. "Occupational Diversification And Access To Rural Employment: Revisiting The Non Farm Employment Debate," MPRA Paper 7870, University Library of Munich, Germany.
    11. Deichmann, Uwe & Shilpi, Forhad & Vakis, Renos, 2009. "Urban Proximity, Agricultural Potential and Rural Non-farm Employment: Evidence from Bangladesh," World Development, Elsevier, vol. 37(3), pages 645-660, March.
    12. Fan, Shenggen & Jitsuchon, Somchai & Methakunnavut, Nuntaporn, 2004. "The importance of public investment for reducing rural poverty in middle-income countries," DSGD discussion papers 7, International Food Policy Research Institute (IFPRI).
    13. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
    14. Abraham, Vinoj, 2011. "Agrarian distress and rural non-farm sector employment in India," MPRA Paper 35275, University Library of Munich, Germany.
    15. Islam, Nurul, 1997. "The nonfarm sector and rural development: review of issues and evidence," 2020 vision discussion papers 22, International Food Policy Research Institute (IFPRI).
    16. Lanjouw, Jean O. & Lanjouw, Peter, 1995. "Rural nonfarm employment : a survey," Policy Research Working Paper Series 1463, The World Bank.
    17. Mariapia Mendola, 2003. "Agricultural Technology and Povertry Reduction: A Micro-Level Analysis of Causal Effects," Development Working Papers 179, Centro Studi Luca d'Agliano, University of Milano.
    18. Chand, Ramesh & Raju, S.S. & Pandey, L.M. & Sonalika, Surabhi, 2009. "Linkages Between Urban Consumption and Rural Non-Farm Employment and Agricultural Income: A New Perspective," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3).

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