IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4611.html
   My bibliography  Save this paper

Spatial specialization and farm-nonfarm linkages

Author

Listed:
  • Deichmann, Uwe
  • Shilpi, Forhad
  • Vakis, Renos

Abstract

Using individual level employment data from Bangladesh, this paper presents empirical evidence on the relative importance of farm and urban linkages for rural nonfarm employment. The econometric results indicate that high return wage work and self-employment in nonfarm activities cluster around major urban centers. The negative effects of isolation on high return wage work and on self-employment are magnified in locations with higher agricultural potential. The low return nonfarm activities respond primarily to local demand displaying no significant spatial variation. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for nonfarm development in Bangladesh.

Suggested Citation

  • Deichmann, Uwe & Shilpi, Forhad & Vakis, Renos, 2008. "Spatial specialization and farm-nonfarm linkages," Policy Research Working Paper Series 4611, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4611
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/04/28/000158349_20080428142922/Rendered/PDF/wps4611.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lewis, Blane D. & Thorbecke, Erik, 1992. "District-level economic linkages in Kenya: Evidence based on a small regional social accounting matrix," World Development, Elsevier, vol. 20(6), pages 881-897, June.
    2. Foster, Andrew D & Rosenzweig, Mark R, 2004. "Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 509-542, April.
    3. 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.
    4. Haggblade, Steven & Hazell, P. B. R. & Reardon, Thomas, 2002. "Strategies for stimulating poverty-alleviating growth in the rural nonfarm economy in developing countries," EPTD discussion papers 92, International Food Policy Research Institute (IFPRI).
    5. Marcel Fafchamps & Forhad Shilpi, 2005. "Cities and Specialisation: Evidence from South Asia," Economic Journal, Royal Economic Society, vol. 115(503), pages 477-504, April.
    6. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-737, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Massimiliano Calì & Carlo Menon, 2013. "Does Urbanization Affect Rural Poverty? Evidence from Indian Districts," The World Bank Economic Review, World Bank, vol. 27(2), pages 171-201.
    2. Fuwa, Nobuhiko & Balisacan, Arsenio M. & Mapa, Dennis & Abad Santos, Carlos & Piza, Sharon Faye, 2012. "Sectoral Growth Linkages and the Role of Infrastructure Development: Revisiting the sources of nonfarm development in the rural Philippines," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126456, International Association of Agricultural Economists.
    3. Sen, Binayak & Dorosh, Paul & Ahmed, Mansur, 2021. "Moving out of agriculture in Bangladesh: The role of farm, non-farm and mixed households," World Development, Elsevier, vol. 144(C).
    4. Asfaw, Solomon & Savastano, Sara, 2015. "Topic: Building Resilience to Climate Change Through Social Protection and Climate-Smart Agriculture: Synergies and Trade-offs," 2015 Conference, August 9-14, 2015, Milan, Italy 210963, International Association of Agricultural Economists.
    5. Davis, Benjamin & Di Giuseppe, Stefania & Zezza, Alberto, 2017. "Are African households (not) leaving agriculture? Patterns of households’ income sources in rural Sub-Saharan Africa," Food Policy, Elsevier, vol. 67(C), pages 153-174.
    6. World Bank, 2004. "Sri Lanka - Reshaping Economic Geography : Connecting People to Prosperity," World Bank Publications - Books, The World Bank Group, number 21549, December.
    7. Ahmed, Mansur & Goodwin, Barry, "undated". "Agricultural Mechanization and Non-Farm Labor Supply of Farm Households: Evidence from Bangladesh," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236131, Agricultural and Applied Economics Association.
    8. Asfaw, Solomon & McCarthy, Nancy & Paolantonio, Adriana & Cavatassi, Romina & Amare, Mulubrhan & Lipper, Leslie, 2015. "Diversification, Climate Risk and Vulnerability to Poverty: Evidence from Rural Malawi," 2015 Conference, August 9-14, 2015, Milan, Italy 230216, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 163-193, October.
    3. Massimiliano Calì & Carlo Menon, 2013. "Does Urbanization Affect Rural Poverty? Evidence from Indian Districts," The World Bank Economic Review, World Bank, vol. 27(2), pages 171-201.
    4. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    5. Block, Steven A., 1999. "Agriculture and economic growth in Ethiopia: growth multipliers from a four-sector simulation model," Agricultural Economics, Blackwell, vol. 20(3), pages 241-252, May.
    6. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    7. Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2011. "Are Schooling and Roads Complementary? Evidence from Income Dynamics in Rural Indonesia," World Development, Elsevier, vol. 39(12), pages 2232-2244.
    8. Vandercasteelen, Joachim & Beyene, Seneshaw Tamru & Minten, Bart & Swinnen, Johan, 2018. "Cities and agricultural transformation in Africa: Evidence from Ethiopia," World Development, Elsevier, vol. 105(C), pages 383-399.
    9. Ravallion, Martin, 2002. "Externalities in rural development - evidence for China," Policy Research Working Paper Series 2879, The World Bank.
    10. Headey, Derek D. & Jayne, T.S., 2014. "Adaptation to land constraints: Is Africa different?," Food Policy, Elsevier, vol. 48(C), pages 18-33.
    11. Pham, Hung T, 2006. "Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002," MPRA Paper 6476, University Library of Munich, Germany.
    12. Yamauchi, Futoshi, 2014. "Roads, labor markets, and human capital : evidence from rural Indonesia," Policy Research Working Paper Series 7139, The World Bank.
    13. Dzanku, Fred Mawunyo, 2019. "Food security in rural sub-Saharan Africa: Exploring the nexus between gender, geography and off-farm employment," World Development, Elsevier, vol. 113(C), pages 26-43.
    14. Stifel, David & Minten, Bart, 2015. "Market Access, Welfare, and Nutrition: Evidence from Ethiopia:," ESSP working papers 77, International Food Policy Research Institute (IFPRI).
    15. Fafchamps, Marcel & Wahba, Jackline, 2006. "Child labor, urban proximity, and household composition," Journal of Development Economics, Elsevier, vol. 79(2), pages 374-397, April.
    16. Lanjouw, Jean O. & Lanjouw, Peter, 1995. "Rural nonfarm employment : a survey," Policy Research Working Paper Series 1463, The World Bank.
    17. Futoshi Yamauchi, 2016. "The Effects of Improved Roads on Wages and Employment: Evidence from Rural Labour Markets in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(7), pages 1046-1061, July.
    18. 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.
    19. Marcel Fafchamps & Forhad Shilpi & The World Bank, 2004. "Isolation and Subjective Welfare," Economics Series Working Papers 216, University of Oxford, Department of Economics.
    20. Asep Suryahadi & Daniel Suryadarma & Sudarno Sumarto & Jack Molyneaux, "undated". "Agricultural Demand Linkages and Growth Multiplier in Rural Indonesia," Working Papers 355, Publications Department.

    More about this item

    Keywords

    Transport Economics Policy&Planning; Rural Poverty Reduction; Crops&Crop Management Systems; Labor Policies;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4611. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.