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Patterns of Rural Development: A Cross-Country Comparison Using Microeconomic Data

Author

Listed:
  • Paul Winters

    (American University Washington, DC USA)

  • Timothy Essam

    (University of Maryland, MD USA)

  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Alberto Zezza

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Calogero Carletto

    (World Bank Washington, DC, USA)

  • Kostas Stamoulis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract
This article proposes a general pattern of rural development in which rises in per capita income are associated with a decline in the importance of agricultural production and a rise in the importance of non-agricultural income sources. Following the approach to examining Engel’s Law, we use data from 15 developing countries and a merged data set to test whether such a pattern emerges. The analysis shows a strong, positive relationship between rising per capita income and the share of income earned from rural non-agricultural activities and a negative relationship between per capita income and agricultural production.

Suggested Citation

  • Paul Winters & Timothy Essam & Benjamin Davis & Alberto Zezza & Calogero Carletto & Kostas Stamoulis, 2008. "Patterns of Rural Development: A Cross-Country Comparison Using Microeconomic Data," Working Papers 08-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    • Handle: RePEc:fao:wpaper:0806
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    References listed on IDEAS

    as
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    Cited by:

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    2. Binswanger-Mkhize, Hans P. & Johnson, Timothy & Samboko, Paul Chimuka & You, Liangzhi, 2016. "The impact of urban growth on agricultural and rural non-farm growth in Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249274, African Association of Agricultural Economists (AAAE).
    3. Ugo Pica-Ciamarra & Luca Tasciotti & Joachim Otte & Alberto Zezza, 2015. "Livestock in the Household Economy: Cross-Country Evidence from Microeconomic Data," Development Policy Review, Overseas Development Institute, vol. 33(1), pages 61-81, January.
    4. Headey, Derek, 2011. "Was the Global Food Crisis Really a Crisis?: Simulations versus Self-Reporting," Research briefs 17, International Food Policy Research Institute (IFPRI).
    5. Gamel Abdul-Nasser Salifu & Kwabena Asomanin Anaman, 2019. "A Political Economy Analysis of Income Diversification Activities of Rural Households in the Northern Region of Ghana," Applied Economics and Finance, Redfame publishing, vol. 6(5), pages 10-34, September.
    6. Sukhwinder Singh & Andrew D. Jones & Ruth S. DeFries & Meha Jain, 2020. "The association between crop and income diversity and farmer intra-household dietary diversity in India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 369-390, April.
    7. 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.
    8. Sayla Khandoker & Alka Singh & Shivendra Kumar Srivastava, 2022. "Leveraging farm production diversity for dietary diversity: evidence from national level panel data," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-20, December.
    9. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    10. Benjamin Davis & Paul Winters & Thomas Reardon & Kostas Stamoulis, 2009. "Rural nonfarm employment and farming: household‐level linkages," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 119-123, March.
    11. Van Hoyweghen, Kaat & Van Den Broek, Goedele & Maertens, Miet, 2018. "Understanding the importance of wage employment for rural development: Evidence from Senegal," Working Papers 272323, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    12. Fałkowski, Jan, 2017. "Promoting change or preserving the status quo? The consequences of dominating local politics by agricultural interests," Land Use Policy, Elsevier, vol. 68(C), pages 448-459.
    13. Marco Stampini & Benjamin Davis, 2009. "Does nonagricultural labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 177-188, March.
    14. Sharma, Govinda & Pandit, Ram & White, Ben & Polyakov, Maksym, 2015. "The Income Diversification Strategies of Smallholder Coffee Producers in Nepal," 2015 Conference (59th), February 10-13, 2015, Rotorua, New Zealand 202580, Australian Agricultural and Resource Economics Society.
    15. Kaat Van Hoyweghen & Goedele Van den Broeck & Miet Maertens, 2020. "Employment Dynamics and Linkages in the Rural Economy: Insights from Senegal," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 904-928, September.
    16. Xiaoping Zhou & Xiaotian Li & Wei Song & Xiangbin Kong & Xiao Lu, 2021. "Farmland Transitions in China: An Advocacy Coalition Approach," Land, MDPI, vol. 10(2), pages 1-20, January.
    17. Davis,Benjamin K. & Di Giuseppe,Stefania & Zezza,Alberto & Davis,Benjamin K. & Di Giuseppe,Stefania & Zezza,Alberto, 2014. "Income diversification patterns in rural Sub-Saharan Africa : reassessing the evidence," Policy Research Working Paper Series 7108, The World Bank.
    18. Fałkowski, Jan, 2016. "Promoting change or preserving the status quo? - the consequences of dominating local politics by agricultural interests. Some evidence on structural change in Poland during the transition period," 149th Seminar, October 27-28, 2016, Rennes, France 245115, European Association of Agricultural Economists.
    19. Ulf Römer & Oliver Mußhoff & Ron Weber & Calum G. Turvey, 2018. "Assessing the Reliability of Self‐reported Income Information in Informal Small Business Lending through a Bogus Pipeline Experiment," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 726-738, September.
    20. D'Amico, Mario & Coppola, Adele & Chinnici, Gaetano & Di Vita, Giuseppe & Pappalardo, Gioacchino, 2012. "EU Agricultural Systems in the new CAP perspectives," 126th Seminar, June 27-29, 2012, Capri, Italy 126116, European Association of Agricultural Economists.
    21. Asif Z. Warsi & Muhammad Shujaat Mubarik, 2015. "Determinants of agricultural production: A Cross-country Sensitivity analysis," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 9(2), pages 32-42, Fall.
    22. Govinda P. Sharma & Ram Pandit & Ben White & Maksym Polyakov, 2020. "The income diversification strategies of smallholders in the hills of Nepal," Development Policy Review, Overseas Development Institute, vol. 38(6), pages 804-825, November.
    23. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    24. Nadia Huffman & Wallace Huffman, 2021. "Convergence theory and conditional income convergence among sub‐Saharan African countries," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 915-925, November.
    25. Tran, Tuyen & Vu, Huong, 2013. "Farmland loss, nonfarm diversification and inequality: A micro-econometric analysis of household surveys in Vietnam," MPRA Paper 47596, University Library of Munich, Germany.

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    More about this item

    Keywords

    Rural development patterns; structural transformation; rural nonfarm activities; livelihooods; cross country analysis.;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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