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The State of Food and Agriculture 1998

APPENDIX TABLE 11

RURAL NON-FARM INCOME: STUDIES REVIEWED

 

 Region/Country

Year

Source2


AFRICA
   
Botswana

1974/75
1985/86

Valentine (1993)

Burkina Faso 

1978/79
1981-85

Barrett et al. (1982)
Reardon et al. (1994)

Ethiopia

1989/90

Webb & Reardon (1992)

Gambia

1985/86

von Braun, Puetz & Wenn (1989)

Kenya

1974/75
1987/89
1984

Collier and Lal (1984)
Francis and Hoddinot (1993)
Livingstone (1991)

Lesotho

1976

Low (1986)

Malawi

1990/91

Peters (1992)

Mali

1988/89

Sundberg (1989)

Mozambique

1991

Tschirley & Weber (1994)

Namibia

1992/93

Keyler (1996)

Niger

1989/90

Hopkins & Reardon (1993) 

Nigeria

1966/67
1974/75

Norman (1973)
Matlon (1979)

Rwanda

1991

Reardon & Clay (1998) 

Senegal

1988/90

Kelly et al. (1993)

South Africa

1982/86

Nattrass & Nattrass (1990)

Sudan

1988

Teklu, von Braun & Zaki (1991)

United Rep. of Tanzania

1980

Collier et al. (1990)

Zimbabwe

1988/89

Chopak (1991)


ASIA
   
Bangladesh

1987
1963
1973
1976
1982

Hossain (1994)
Oshima (1986)


Hossain (1987)

China

1988
1979-1986
1992

Lin (1994)
Jiang &Luo (1987)
FAO (1992)

India

n.a.
1987
1975/76-1979/80
1981
1957/58
1962/63
1974/75
1983/84
1968/69
1969/70
1970/71
1975/76

Chadha (1986)
Ramasamy, Paramasivam & Kandaswamy (1994)
Walker, Singh & Binswanger (1983)
Ahmed (1995/96)
Lanjouw & Stern (1993)



Hazell & Haggblade (1991)



Indonesia

1987
n.a
1977
1983

Jatileksono (1994)
Hafid (1979)
Kasryno (1986)

Japan

1950
1955
1960
1965
1970
1975
1980
1978

Oshima (1986)






Saith (1986)

Malaysia

1974
1973
1979
1980
1981

Shand (1986)
Oshima (1986)

Shand (1986)

Nepal

1987

Uphadhyaya & Thapa (1994)

Pakistan

1968
1986/89
1980/81
1979/80
1986/89

Anderson & Leiserson (1980)
 Adams (1994)
 Ahmed (1995/96)
 Arif, Ahmed & Jannison (1982)
 Garcia & Alderman (1993)

Philippines

1985
n.a.
1970
1984/85
1974
1987
1985
1966
1986
1990
1994

David, Cordova & Otsuka (1994)
 Abedullah (1993)
 Balagot (1974)
 Bouis & Haddad (1990)
 Hayami et al. (1990)

Ranis & Stewart (1993)
Estudillo & Otsuka (1997)



Republic of Korea

1996
1980/81

Choi (1997)
Ahmed (1995/96)

Sri Lanka

1963
1978

Oshima (1986)

Taiwan Province of China

1966
1970
1975
1980

Oshima (1986)



Thailand

1973
1979
1987
1972

Oshima (1986)


Isvilinonda & Wattanutchariya  (1994)
Anderson & Leiserson (1980)

Viet Nam

1992/93
1993/94

Government of Viet Nam (1994)
Wiens (1997)


LATIN AMERICA
   
Argentina

1996

Wiens (1997)

Ecuador

1995

Lanjouw (1997)

El Salvador

1995
n.a.

Lopez (1997)
FUSADES (1996)

Mexico

1984
1989
1994
1986
1984

de Janvry et al. (1995)
  de Janvry, Gordillo de Anda & 
  Sadoulet (1997)
  IFAD (1991)
  de Janvry et al. (1995)

Peru

1984

Figueroa (1987)

1  Sources are cited in full in Appendix Table References, p.346.
Note: n.a. = not applicable.
2 An expanded version of this table, elaborating on statistical data used in the chapter, is included in the diskette accompanying this publication (see the Excel file directory RNF-DATA).
 
 

APPENDIX TABLE 21

RURAL NON-FARM EMPLOYMENT: STUDIES REVIEWED

 

 Region/Country

Year

Source2


ASIA
   
Bangladesh

1979/81
1983/84
1984/85
1990/91

Islam (1984)
 Varma & Kuhmar (1996)


India

1981

Islam (1984)

Indonesia

1976
1980
1985
1992
1980
1980/81
1980
1971
1976
1982

Tambunan (1997)



Kasryno (1986)
  Kasryno (1986)
  Islam (1984)
  Kasryno (1986)


Malaysia

1980

Islam (1984)

Pakistan

1979/81
1979/81

Islam (1984)
 Arif, Ahmed & Jannison (1982)

Philippines

1982

Islam (1984)

Sri Lanka

1979/81

Islam (1984)

Thailand

1979/81

Islam (1984)


LATIN AMERICA
   
Bolivia

1976
1988

Klein (1992)

Brazil

1970
1980
1981
1990
1995

Graziano da Silva (1995)

Graziano da Silva & Eduardo 

  del Grossi (1997)

Chile

1970
1982

Klein (1992)

Colombia

1964
1973

Klein (1992)

Costa Rica

1973
1984

Klein (1992)

Cuba

1970
1981

Klein (1992)

Ecuador

1995
1974
1990
1982

Lanjouw (1997)
Klein (1992)


de Janvry & Glikman (1991)

El Salvador

1971
1975

Klein (1992)

Guatemala

1980
1964
1973
1989

CEPAL (1985)
  Klein (1992)


Weller (1997)

Haiti

1971
1982

Klein (1992)

Honduras

1974
1988

Klein (1992)

Mexico

1970
1980

Klein (1992)


Nicaragua

1950
1971

Klein (1992)

Panama

1970
1980
1989

Klein (1992)

Weller (1997)

Paraguay

1972
1982

Klein (1992)

Peru

n.a.
1972
1981

Escobal & Valdivia (1997)
  Klein (1992)

Uruguay

1975
1985

  Klein (1992)

Venezuela

1971
1981
1982

Klein (1992)


FUSADES (1996)

1  An expanded version of this table, elaborating on statistical data used in the chapter, is included in the diskette accompanying this publication (see the Excel file directory RNF-DATA).
2 Sources are cited in full in Appendix Table References, p. 346.
Note: n.a. = not applicable.
 
 
 
 

APPENDIX TABLE 31

RURAL NON-FARM HOUSEHOLD INCOME OVER INCOME OR LAND STRATA: STUDIES REVIEWED

 

 Region/Country

Year

Source2


AFRICA
   
Botswana

1985/86

Valentine (1993)

Burkina Faso 

1981-85

Reardon et al. (1994)

Ethiopia

1989/90

Webb & Reardon (1992)

Gambia

1985/86

von Braun, Puetz & Webb (1989)

Kenya

1974/75

Collier and Lal (1984)

Lesotho

1976

Low (1986)

Mozambique

1991

Tschirley & Weber (1994)

Niger

1989/90

Hopkins & Reardon (1993) 

Rwanda

1991

Reardon & Clay (1998) 

Senegal

1988/90

Kelly et al. (1993)


ASIA
   
India

n.a.
1957/58
1962/63
1974/75
1983/84
1968/69
1970/71
1975/76-1979/80

Chadha (1986)
Lanjouw & Stern (1993)



Hazell & Haggblade (1991)

Walker, Singh & Binswanger (1983)

Indonesia

n.a

 Hafid (1979)

Japan

1978

Saith (1986)

Pakistan

1968
1986/89
1986/89
1979/80

Anderson & Leiserson (1980)
 Adams (1994)
   Garcia & Alderman (1993)
Arif, Ahmed & Jannison (1982)

Philippines

1984/85
1972

 Bouis & Haddad (1990)
Anderson & Leiserson (1980)

Republic of Korea

1970
1996

Choi (1997)

Viet Nam

1992/93

Government of Viet Nam (1994)


LATIN AMERICA
   
Argentina

1996

Wiens (1997)

Ecuador

1995

Lanjouw (1997)

El Salvador

1995

Lopez (1997)

Mexico

1984
1989
1994
1986
1984

de Janvry et al. (1995)
  de Janvry, Gordillo de Anda & 
  Sadoulet (1997)
Marsh In the Janvry et al. (1995)
    de Janvry et al. (1995)

1  1 An expanded version of this table, elaborating on statistical data used in the chapter, is included in the diskette accompanying this publication (see the Excel file directory RNF-DATA).
2 Sources are cited in full in Appendix Table References, p. 346.
Note: n.a. = not applicable.
 
 

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Hafid, A. 1979. An economic analysis of institutional changes: the case of the rice harvesting system in Java. Los Baños, University of the Philippines. (Ph.D. Dissertation)
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Hazell, P.B.R. & Haggblade, S. 1991. Rural-urban growth linkages in India. India Journal of Agricultural Economics, 46(4): 515-529.
Hopkins, J. & Reardon, T. 1993. Agricultural price policy reform impacts and food aid targeting in Niger. Washington, DC, IFPRI. (mimeo)
Hossain, M. 1987. The assault that failed: a profile of absolute poverty in six villages of Bangladesh. Geneva, UNRISD.
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IFAD. 1991. Proyecto de apoyo a pequeños agricultores de la zona semi-árida de los estados de Falcón y Lara, República de Venezuela. Encuesta socioeconómica, estudio de base. Rome.
Islam, R. 1984. Rural industrialisation and employment in Asia: issues and evidence. In R. Islam, ed. Strategies for alleviating poverty in rural Asia. Los Baños, IRRI.
Isvilinonda, S. & Wattanutchariya, S. 1994. Modern variety adoption, factor-price differential and income distribution in Thailand. In C. David & K. Otsuka, eds. Modern rice technology and income distribution in Asia. Los Baños, IRRI.
Jatileksono, T. 1994. Varietal improvements, productivity change and income distribution: the case of Lampung, Indonesia. In C. David & K. Otsuka, eds. Modern rice technology and income distribution in Asia. Los Baños, IRRI.
Jiang, J. & Luo, X. 1987. Changes in the income of Chinese peasants since 1978. In J. Longworth, ed. China’s rural development miracle: with international comparisons. Brisbane, Australia, University of Queensland Press.
Kasryno, F. 1986. Structural changes in rural employment and agricultural wage in Indonesia. In Y.-B. Choe & F.C. Lo, eds. Rural industrialization and non-farm activities of Asian farmers. Seoul, Korea Rural Economics Institute.
Kelly, V., Reardon, T., Diagana, B., Gaye, M. and McNeilly, L. 1993. Final Report of IFPRI/ISRA Project on Consumption and Supply Impacts of Agricultural Price Policies in Senegal. Washington, DC, IFPRI. (mimeo)
Keyler, S. 1996. Economics of the Namibian Millet Subsector. East Lansing, USA, Michigan State University. (Ph.D. Dissertation)
Klein, E. 1992. El empleo rural no agricola en America Latina. Report No. 364. Santiago de Chile, PREALC.
Lanjouw, P. 1997. Rural non-agricultural employment and poverty in Latin America: evidence from Ecuador and El Salvador. In R. Lopez & A. Valdes, eds. Rural poverty in Latin America: analytics, new empirical evidence and policy.  Washington, DC, World Bank.
Lanjouw, P. & Stern, N. 1993. Markets, opportunities and changes in inequality in Palanpur 1957-1984. In A. Braverman, K. Hoff & J. Stiglitz, eds. The economics of rural organization: theory, practice and policy. New York, Oxford University Press.
Lin, J.Y. 1994. The nature and impact of hybrid rice in China. In C. David & K. Otsuka, eds. Modern rice technology and income distribution in Asia. Los Baños, IRRI.
Livingstone, I. 1991. A reassessment of Kenya's rural and urban informal sector. World Development Report, 19(6): 651-670.
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Matlon, P. 1979. Income distribution among farmers in northern Nigeria. African Rural Economy Paper Report No. 18. East Lansing, USA, Michigan State University.
Nattrass, N. & Nattrass, J. 1990. The homelands and rural development. Development Southern Africa, 7(October): 517-534.
Norman, D. 1973. Economic analysis of agricultural production and labour utilization among the Hausa in the north of Nigeria. African Rural Employment Paper Report No. 4. East Lansing, USA, Michigan State University.
Oshima, H. 1986. Levels and trends of farm families’ non-agricultural incomes at different stages of monsoon development. In Y.-B. Choe & F.C. Lo, eds. Rural industrialization and non-farm activities of Asian famers. Seoul, Korea Rural Economics Institute.
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Reardon, T., Fall, A., Kelly, V., Delgado, C., Matlon, P., Hopkins, J. & Badiane, O. 1994. Is income diversification agriculture-led in the West African semi-arid tropics? The nature, causes, effects, distribution and production linkages of off-farm activities. In A. Atsain, S. Wangwe & A.G. Drabek, eds. Economic policy experience in Africa: what have we learned? Nairobi, African Economic Research Consortium.
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Notes


1 Throughout this chapter “farm activity” will be used synonymously with “agriculture” and “non-farm activity” synonymously with “non-agricultural activity”.

2 Farm households are defined as rural households that carry out some farming activities.

3 The distinction between “push” and “pull” factors is not always precise. Indeed, when considering the relative “merits” of the two sectors, “pull” and “push” factors are interchangeable. In some cases, however (e.g. the risk motive or credit/cash constraints), the distinction is clearer: the risk of farming and lack of insurance and credit markets may “push” farm households to devote some of their productive resources to RNF activities, which produce a more stable income even though the returns expected from the farm activity are higher on average (i.e. when averaged over several periods).

4 Agroclimatic zones are characterized by common rainfall patterns, soil characteristics, sunlight and temperature, and hence by a common potential for agriculture.

5 See note 2.

6 Data on non-farm income shares are based exclusively on survey case studies, while the data on non-farm employment shares are based on a combination of occupation censuses and survey data from Asia and Latin America.

7 A complete documentation of the statistical data used in the analysis can be found in spreadsheet format on the accompanying diskette, which also includes a set of international agricultural time series.  The Excel files containing these data are located in the directory RNF-DATA.

8 The coefficient of variation is a statistical indicator of the degree to which the various observations in a sample are dispersed around its mean. The smaller the coefficient of variation, the closer the observations on the whole are to the mean; the larger the coefficient of variation, the more they are dispersed around the mean value of the sample.

9 S. Haggblade, P. Hazell and J. Brown. 1989. Farm-non-farm linkages in rural sub-Saharan Africa. World Development, 17(8): 1173-1201.

10 Further reasons why it is difficult to make a comparison between the two sources are: i) the employment shares are derived from official aggregate statistics, while the income shares have been derived from selected case studies; ii) official employment statistics tend to include both rural towns and the countryside while the case study income information mainly refers to the countryside.

11 T. Reardon, A. Fall, V. Kelly, C. Delgado, P. Matlon, J. Hopkins and O. Badiane. 1994. Is income diversification agriculture-led in the West African semi-arid tropics? The nature, causes, effects, distribution and production linkages of off-farm activities. In A. Atsain, S. Wangwe and A.G. Drabek, eds. Economic policy experience in Africa: what have we learned?, p. 207-230. Nairobi, African Economic Research Consortium.

12 K. Otsuka. 1998. Rural industrialization in East Asia. In Y. Hayami and M. Aoki, eds. The institutional foundation of East Asian economic development. London, Macmillan.

13 Details on the methodology and findings can be found in A. Klein. 1992. El empleo rural no agricola en América Latina. Report No. 364. Santiago, PREALC.

14 Ibid.

15 D. Mead. 1994. The contribution of small enterprises to employment growth in southern and eastern Africa. World Development, 22(12): 1881-1894.

16 K. Otsuka, op. cit., note 12.

17 J.A. Schaffner. 1993. Rural labor legislation and permanent agricultural employment in northeastern Brazil. World Development, 21(5): 705-719.

18 See R. Adams. 1996. Remittances, income distribution and rural asset accumulation. Research Report No. 17. Washington, DC, IFPRI.

19 X. Milicevic and J. Berdegue. 1998. Non-farm employment linked directly and indirectly to the agro-industrial boom: the horticultural belt of central Chile. Paper presented at the III Simposio Latinoamericano de Investigación y Extensión en Sistemas Agropecuarios, 19-21 August 1998, Lima, RIMISP.

20 E. Francis and J. Hoddinott. 1993. Migration and differentiation in western Kenya: a tale of two sub-locations. Journal of Development Studies, 30(1): 115-145.

21 L. Daniels. 1995. Entry, exit and growth among small-scale enterprises in Zimbabwe. Michigan State University, East Lansing,  USA. (Ph.D. Dissertation)

22 This comparison could be made in the case of household studies reported from Botswana, Ethiopia, Kenya, Malawi, Rwanda, the Sudan and Zimbabwe.

23 C. Liedholm and D. Mead. 1987. Small-scale industries in developing countries: empirical evidence and policy implications. Report No. 9. Department of Agricultural Economics. Michigan State University, East Lansing, USA; and D. Mead. 1994. The contribution of small enterprises to employment growth in southern and eastern Africa. World Development, 22(12): 1881-1984.

24 The latter argument dates back to the British economist David Ricardo whose model reflected circumstances in nineteenth-century United Kingdom but is still widely applicable in developing country agriculture today. In Ricardo’s model, rising food costs (driven by rising farm production costs from diminishing returns to labour, i.e. declining factor productivity) drive up the subsistence wage, hence the market wage, which drives down profits and investment and growth in the non-farm economy. By contrast, “cheap food” was an important factor – and agricultural success a preliminary condition – in the East Asian rural industrialization from the 1950s (A. Saith. 1986. Contrasting experiences in rural industrialization: are the East Asian successes transferable? In R. Islam, ed. Rural industrialization and employment in Asia. New Delhi, ILO). The converse also holds – high food costs have been a drag on African industrialization, whether rural or urban (M. Lipton and M. Lipton. 1993. Creating rural livelihoods: some lessons for South Africa from experience elsewhere. World Development, 21(9): 1515-1548).

25 R. Ahmed and M. Hossain. 1990. Developmental impact of rural infrastructure in Bangladesh. Research Report No. 83. Washington, DC, IFPRI.

26 H. Oshima. 1986. Levels and trends of farm families’ non-agricultural incomes at different stages of monsoon development. In Y.B. Choe and F.C. Lo, eds. Rural industrialization and non-farm activities of Asian farmers. Seoul, Korea Rural Economics Institute.

27 Y.B. Choe. 1986. M-cycle hypothesis, non-farm activities and rural industrialization in the Asian monsoon economy. In Choe and Lo, op. cit., note 26.

28 See M.U. Ahmed and N. Rustagi. 1987. Marketing and price incentives in African and Asian countries: a comparison. In E. Elz, ed. Agricultural marketing strategy and pricing policy. Washington, DC, World Bank.

29 Reardon et al., op. cit., note 11.

30 Saith, op. cit., note 24.

31 J. Dione, J.-C. Le Vallée, J. Staatz, J. Tefft, M. Yade, A. Chohin and B. Kante. 1997. Lessons from the impact of the devaluation of the CFA franc on agri-food subsectors in West Africa. Policy Brief. Department of Agricultural Economics, Michigan State University, East Lansing, USA.

32 P. Collier and D. Lal. 1984.  Why poor people get rich: Kenya 1960-79. World Development, 12(10): 1007-1018.

33 R. H. J. Adams. 1994. Non-farm income and inequality in rural Pakistan: a decomposition analysis. Journal of Development Studies, 31(1): 110-133.

34 J.E. Taylor and A. Yunez-Naude. 1998. Selectivity and the returns to schooling in a diversified rural economy. University of California at Davis, Davis, USA. (mimeo)

35 P. Lanjouw and N. Stern. 1993. Markets, opportunities and changes in inequality in Palanpur, 1957-1984. In A. Braverman, K. Hoff and J. Stiglitz, eds. The economics of rural organization: theory, practice and policy. New York, Oxford University Press.

36 J.P. Estudillo and K. Otsuka. 1998. Green revolution, human capital and off-farm employment: changing sources of income among farm households in central Luzon, 1966-94. Economic Development and Cultural Change (forthcoming).

37  For the purpose of this chapter, agro-industrial activities are defined as the collective set of production linkage activities, i.e. farm input provision and agroprocessing and distribution.

38 J. von Braun and R. Pandya-Lorch. 1991. Income sources of malnourished people in rural areas: microlevel information and policy implications. Working Paper No. 5. Washington, DC, IFPRI.

39 A. de Janvry, G. Gordillo de Anda and E. Sadoulet. 1997. Mexico’s second agrarian reform: household and community responses, 1990-1994. La Jolla, Center for US-Mexican Studies, University of California, San Diego, USA.

40 M.U. Ahmed. 1995/96. Development of rural non-farm activities: a dynamic approach to poverty alleviation in rural Asia. Regional Development Studies, 2(winter): 1-22.

41 T. Reardon. 1997. Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa. World Development, 25(5): 735-748.

42 The Gini coefficient is a statistical indicator that measures the extent to which the actual income distribution diverges from a hypothetical perfectly equal distribution. The larger the Gini coefficient is, the more unequal income distribution is.

43 In this case, in a comparison of Gini coefficients, the coefficient for total income is higher when non-farm income is included than when it is not or, if using the Gini decomposition approach, marginal changes in non-farm income – when all other factors are constant – increase the Gini coefficient.

44 T. Reardon and J.E. Taylor. 1996. Agroclimatic shock, income inequality and poverty: evidence from Burkina Faso. World Development, 24(4): 901-914.

45 Op. cit., note 35.

46 Op. cit., note 44.

47 G.K. Chadha.  1986. Off-farm economic structure of agriculturally growing regions: a study of Indian Punjab. In R.T. Shand, ed. Off-farm employment in the development of rural Asia. Canberra, National Centre for Development Studies, Australian National University.

48 A. Narongchai. 1981. Rural off-farm employment in Thailand. Bangkok, Industrial Management Company, Ltd.

49 For a report on Mexico, see J.E. Taylor. 1992. Remittances and inequality reconsidered: direct, indirect and intertemporal effects. Journal of Policy Modeling, 14(2): 187-208; for a report on Africa, see T. Reardon, E. Crawford and V. Kelly. 1994b. Links between nonfarm income and farm investments in African households: adding the capital market perspective. American Journal of Agricultural Economics, 76(5): 1172-1176.

50 Francis and Hoddinott, op. cit., note 20.

51 C. André and J.-P. Platteau. 1998. Land tenure under unbearable stress: Rwanda caught in the Malthusian trap. Journal of Economic Behavior and Organization, 34(1).

52 Estudillo and Otsuka, op. cit., note 36.

53 In some countries, an infrastructural instrument that has been used, with mixed results, to effect RNF company starts and the relocation of businesses to rural areas is the establishment of industrial parks or districts (such as in South Africa and the Republic of Korea and in some developed countries, such as Italy).

54 For a further discussion, see V. Kelly, J. Hopkins, T. Reardon and E. Crawford. 1995. Improving the measurement and analysis of African agricultural productivity: promoting complementarities between micro and macro data. MSU International Development Paper No. 16. East Lansing, USA, Michigan State University.

55 The assessment of such effects for different agro-industries and products is the subject of a current FAO project on farm/non-farm linkages.

56 A. Schejtman. 1996. Agroindustria: alcances conceptuales para una política de estimulo a su articulación. LC/R Report No. 1660. Santiago de Chile, CEPAL.

57 Ibid.

58 For the case of West Africa, see N.N. Dembele and K. Savadogo. 1996. The need to link soil fertility management to input/output market development in West Africa: key issues. Paper presented at the International Fertilizer Development Center Seminar, 19-22 November, Lomé, Togo.

59 FAO. 1996. Ciudades intermedias y desarrollo rural: el caso de Zamora, Michoacán (Mexico). By F. Rello. Santiago de Chile, FAO Regional Office for Latin America and the Caribbean.

60 Op. cit., note 24
 

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