Effectiveness of non-farm diversification on rural household income – evidence and policy implications from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shreya Kapoor ◽  
Sanjeev Kapoor
Keyword(s):  
Household Income ◽  
Rural Households ◽  
Rural Household ◽  
Policy Implications ◽  
Sample Survey ◽  
Indian States ◽  
Farm Sector ◽  
Content Type ◽  
Farm Diversification ◽  
Household Incomes

Purpose Doubling farming households’ income through occupational diversification to the non-farm sector has been advocated to be of paramount importance in an agrarian economy such as India. The purpose of this paper is to analyse the effects of non-farm activities on rural household incomes in four different Indian states by using a propensity score matching technique and developing an endogenous switching model. Design/methodology/approach The research is based on secondary data taken from four quinquennial rounds of employment and unemployment surveys conducted by the National Sample Survey Organization. Findings The matching results indicate a maximum monthly rise in per capita income of Rs. 60 in Gujarat and a minimum increase of Rs. 18 in Rajasthan among rural households employed in the non-farm sector as compared to the farm sector. The findings confirm that rural non-farm structural diversification cannot be viewed as a blueprint for increasing rural household incomes in different states. Further, it suggests the need to segmenting the different states on the basis of agricultural development for increasing rural incomes. Research limitations/implications The study argues that Indian states with a strongly developed farm sector i.e. Gujarat and Punjab are not ideally suited to undergo structural changes in their economic pursuit. The estimates suggest that the transition of rural households from farm to non-farm-sector activities is a very weak strategy in agriculturally developed states of Gujarat and Punjab, whereas non-farm diversification becomes a pivotal strategy for increasing rural household incomes in less agriculturally developed states such as Rajasthan and Uttar Pradesh. A contrasting point that arises from these evidence is that although diversification to the non-farm sector leads to higher income, but the resultant figures are very scanty. Originality/value The present study contributes to the existing literature by providing evidence and policy implications on rural non-farm diversification in India and its impact on the rural household income. The study can help the policymakers in framing policies aiming at increasing the income of the rural household through the structural transition of the rural economy.

Convergence and mobility of rural household income in China

2016 ◽  
Vol 8 (3) ◽  
pp. 383-398 ◽  
Author(s):  
Shi Li ◽  
Tsun Se Cheong
Keyword(s):  
Income Distribution ◽  
Household Income ◽  
Rural Households ◽  
Rural Household ◽  
Transitional Dynamics ◽  
Rural Sector ◽  
Content Type ◽  
Income Distributions ◽  
Kernel Approach ◽  
Per Capita

Purpose The purpose of this paper is to study convergence and income mobility of China’s rural households. Design/methodology/approach The data of rural household income per capita are employed to compute the transitional dynamics in the rural sector. The analyses are conducted at two spatial levels, namely, the national and provincial levels. Ergodic distributions are computed to provide a forecast of future income distributions, whereas Mobility Probability Plots are constructed to offer detailed information on the transitional dynamics. Findings The income distributions are found to have considerable persistence. Another finding is that most of the households (except the extremely low-income households) have a tendency of moving downwards in the income distribution though they are more likely to remain in the same levels of relative income because of their high persistence. Convergence to a unimodal income distribution is possible in the long run, however, the households will converge to a value which is far below China’s per capita gross domestic product. Research limitations/implications Since a lot of the rural households would congregate to the lower part of the income distribution if the transitional dynamics remain unchanged, therefore, it calls for government intervention. Practical implications More resources should be diverted to the rural sector. Social implications The finding also shows that the provinces have very different transitional dynamics even if they are situated in the same economic zone. Thus, the government should formulate province-specific development polices so as to promote greater equality. Originality/value Given that no recent research has been conducted on convergence and transitional dynamics of rural household income. Therefore, this paper attempts to fill the gap in the literature by investigating the pattern and future development of rural household income in China through the use of stochastic kernel approach.

Effects of credit constraints on rural household technical efficiency

2014 ◽  
Vol 6 (4) ◽  
pp. 654-668 ◽  
Author(s):  
Jianmei Zhao ◽  
Peter J. Barry
Keyword(s):  
Technical Efficiency ◽  
Credit Constraints ◽  
Rural Households ◽  
Northern China ◽  
Rural Household ◽  
Policy Implications ◽  
Supply Side ◽  
Demand Side ◽  
Tobit Regression ◽  
Content Type

Purpose – The purpose of this paper is to evaluate the effects of access to formal credit on rural household technical efficiency in China. Design/methodology/approach – Based on the rural household survey data in Weifang city, Shandong province in northern China, the authors apply recent developed bootstrapped DEA approach to investigate rural technical efficiency at the household level under the consideration of off-farm activities. Rural households are then identified as credit constrained and classified as supply-side and demand-side credit constraints by applying direct elicitation method. Finally, the authors apply a tobit regression to examine the effects of credit constraints on household technical efficiency. Findings – Rural households in China not only suffer supply-side credit constraints, but also demand-side credit constraints resulted from the transaction costs and risk rationing. The tobit regression discloses that demand-side credit constraints impose significant negative impacts on household technical efficiency. Originality/value – The authors clarify the definition of credit constraints and classify the credit constraints into supply-side and demand-side credit constraints. The results of this paper have significant policy implications for rural finance policies in China.

scholarly journals Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis

2008 ◽  
Vol 3 (2) ◽  
pp. 39-48 ◽  
Author(s):  
Judith Möllers ◽  
Jana Fritzsch ◽  
Gertrud Buchenrieder
Keyword(s):  
Correlation Analysis ◽  
Canonical Correlation Analysis ◽  
Canonical Correlation ◽  
Methodological Approach ◽  
Rural Households ◽  
Farm Sector ◽  
Farm Diversification ◽  
Large Household ◽  
Multiple Correlation Analysis ◽  
Simple Pair

Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation AnalysisThis paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.

Farmer education and household agricultural income in rural India

2015 ◽  
Vol 42 (6) ◽  
pp. 514-529 ◽  
Author(s):  
Sitakanta Panda
Keyword(s):  
Negative Relationship ◽  
Rural Household ◽  
Policy Implications ◽  
Women Farmers ◽  
Farm Income ◽  
Content Type ◽  
Agricultural Income ◽  
Indian Context ◽  
Farmer Education ◽  
Land Size

Purpose – The purpose of this paper is to examine the differences in the rural household agricultural income by farmers’ education while exploiting a nationally representative household survey data set, i.e. the India Human Development Survey-2005, in the rural Indian context. The author seeks to answer the question: how much variation in the household net agricultural income per acre of land cultivated can farmers’ education explain? Design/methodology/approach – The author has employed the ordinary least squares regression model with village fixed effects. The author also analysed the data using some exploratory statistics. Findings – The author finds that farmers’ education significantly increases the net household farm income per acre of land cultivated last year. The results are robust to the inclusion of the five educational degree categories (dummies) in lieu of the years of schooling variable. The results are also robust to its decomposition into that for men and for women separately. Women farmers’ education has an amplified impact on farm incomes. The author also confirms the inverse relationship between the household agricultural income and land area cultivated, which is consistent with the huge literature on the negative relationship between land size-class and farm productivity. Practical implications – In a developing country with a not-so-modernized agriculture sector and low adoption of newer farming technologies, this validated importance of education in explaining the differences in rural farm earnings has guiding policy implications in that a positive return to farmer schooling signals the need for increased investments in the farmers’ education and awareness so as to enhance farm incomes and productivity. The special policy thrust on education of women and women farmers is critical to ensuring higher farm incomes and outcomes. Originality/value – The literature on the impact of farmers’ education on rural household agricultural income is very sparse. To the best of the author’s knowledge, this issue has not been addressed before in the Indian context. The author explains the contribution of farmer education to farm income in rural Indian households. The author also revisits the negative relationship between farm income and land size holdings in the Indian agriculture.

Conservation payments, off-farm employment and household welfare for farmers participating in the “Grain for Green” program in China

2019 ◽  
Vol 12 (1) ◽  
pp. 71-89 ◽  
Author(s):  
Li Li ◽  
Atsushi Tsunekawa ◽  
Ian MacLachlan ◽  
Guicai Li ◽  
Atsushi Koike ◽  
...  
Keyword(s):  
Household Income ◽  
Policy Implications ◽  
Household Welfare ◽  
Land Resource ◽  
Content Type ◽  
Farm Work ◽  
Grain For Green ◽  
Positive Effects ◽  
Resource Endowment ◽  
The Impact

Purpose The purpose of this paper is to examine the factors (including conservation payments) that influence household decisions to participate in off-farm work and estimate the impact of participation on household welfare under the auspices of the Grain for Green (GfG) program. Design/methodology/approach The authors used survey data from 225 farm households on the Loess Plateau and addressed the possible sample selection and endogeneity problems by employing a jointly estimated endogenous switching regression (ESR) model. Findings The findings of this paper are as follows: off-farm participation is positively related to households’ educational attainment and negatively related to their land resource endowment and the presence of children; participation in off-farm work exerts positive effects on household income and per capita household income, but negative effects on farm productivity; and conservation payments show no significant impact on off-farm participation, no significant impact on any of the three household welfare indicators for off-farm non-participant households, but a significantly negative impact for off-farm participant households. Originality/value This paper makes two contributions. First, the authors address the selection bias and endogeneity problem of GfG participating households by employing the ESR method and explicitly estimating the treatment effects of off-farm participation on their household welfare. Neglecting these problems leads to biased estimates and misleading policy implications. Second, this analysis stresses the important role of government in reducing market or institutional failure and other barriers that impede farmers’ efficient allocation choices instead of compensating households for conserving sloping land, shedding new light on the most effective policy options to achieve the program’s goals.

A sample survey analysis of the effectiveness of training and development initiatives in Bahrain’s financial sector on employability of Bahraini nationals in 2015

2016 ◽  
Vol 12 (4) ◽  
pp. 359-383 ◽  
Author(s):  
Subhadra Ganguli ◽  
Reem Hameed Matar
Keyword(s):  
Financial Services ◽  
Financial Sector ◽  
Training And Development ◽  
Policy Implications ◽  
Sample Survey ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Development Initiatives ◽  
The Impact

Purpose Bahrain has been the center for financial services industry in the Middle East since 1970s as a result of the national strategy of diversification of its economy from oil-based resources to financial services. Since then Bahrain has also become the center for training and development for the Bahraini nationals with the aim of recruiting Bahrainis as employees of choice by the sector. The purpose of this paper is to analyze the effect of training and development initiatives on the employability of Bahrainis in the financial services sector in 2015. To this end, pioneering initiatives were undertaken by the government in creating institutions for training and continuous education in Bahrain. The Economic Vision 2030 of Bahrain lays emphasis on a vibrant private sector with Bahrainis being the employees of choice. Design/methodology/approach The study is a mixed approach using quantitative and qualitative methods through the use of a survey questionnaire and secondary data to analyze the impact of training and development on the employability of Bahraini nationals in the financial sector as of 2015. Findings The findings show that training and development lead to career progression which impact employability rates of Bahrainis in the financial services sector for the selected sample of financial sector employees. Research limitations/implications The study is limited by only a cross-section of data collected via questionnaire and does not consider the historical development and analysis of employability rates in Bahrain over the years. The questionnaire has some limitations and there are expected possible biases in the responses. Originality/value Given the sensitivity of the topic of research, the analysis has policy implications for the labor market of Bahrain due to the Bahrain 2030 Vision of privatization and diversification and is the first study of its kind for the financial sector of Bahrain.

scholarly journals Rural Household Resource Allocation

1970 ◽  
pp. 6
Author(s):  
Joseph Faris
Keyword(s):  
Resource Allocation ◽  
Family Size ◽  
Household Income ◽  
Rural Households ◽  
Land Ownership ◽  
Rural Household ◽  
Ecological Zones ◽  
Household Resource Allocation ◽  
Permanent Residency ◽  
Household Resource

This study is a survey of rural households in Lebanon, covering ten families in each of four villages and representing different human and ecological zones in this country. The four villages are Maad {Jubail, Mt. Lebanon}, Sa'adin {Akkar}, Ain-Zebdeh {Beka'a}, Hassin (Kesrouan, Mt. Lebanon). The ten families were studied in depth, on the basis of family size, permanent residency, employment of head household, income, and land ownership.

An empirical analysis of nature, magnitude and determinants of farmers’ indebtedness in India

2018 ◽  
Vol 45 (6) ◽  
pp. 888-908 ◽  
Author(s):  
Subhendu Datta ◽  
Aviral Kumar Tiwari ◽  
C.S. Shylajan
Keyword(s):  
Rural Areas ◽  
Rural Households ◽  
Modern Technology ◽  
Medical Expenditure ◽  
Sample Survey ◽  
Farm Income ◽  
Lasso Regression ◽  
Significant Information ◽  
Content Type ◽  
Telangana State

PurposeAccording to the 70th round of the National Sample Survey published by the Government of India in 2014, the incidence of indebtedness among households in the rural areas of Telangana state, India, is twice that of rural all-India. Around 59 per cent of rural households are indebted in Telangana as against 31 per cent all-India. The purpose of this paper is to examine the extent and magnitude of indebtedness among rural households in the Medak district of Telangana state. Further, the authors wanted to identify the sources of credit to these households and for what purpose the loans were utilised.Design/methodology/approachTo achieve the objective, the authors conducted a primary-level household survey in one of the distressed districts in newly formed state. The authors applied the Bayesian and the Lasso regression methods to identify the factors that impact indebtedness of a household.FindingsThe OLS results based on the Lasso regression results show that among all the explanatory variables, principal occupation, use of modern technology, the rate of interest, household medical expenditure and source of loan are significant, indicating that these variables significantly affect the loan taken by the farmers in the study area. The study shows that alternative sources of non-farm income and promotion of modern technology in agriculture can reduce the incidence of farmers’ indebtedness in India.Originality/valueThe paper contains significant information with regard to indebtedness. It focusses on the issue troubling the authorities the most. It provides the ground realities of the incidence of indebtedness in Medak, one of the most distressed districts of Telangana, a Southern Indian state. There have been very few similar studies done in the newly formed state. The paper has employed an advanced statistical technique, i.e. Heckman’s selection regression technique, to study farmers’ indebtedness in India. It provides a means of correcting for non-randomly selected samples, which otherwise can lead to erroneous conclusions and poor policy.

Measuring regional competitiveness on the basis of entrepreneurship, technological readiness and quality of institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nirmalkumar Singh Moirangthem ◽  
Barnali Nag
Keyword(s):  
Panel Data ◽  
Generalized Method Of Moments ◽  
Composite Index ◽  
Policy Implications ◽  
Regional Competitiveness ◽  
Indian States ◽  
Content Type ◽  
Technological Readiness ◽  
Relationship Analysis

Purpose Developing composite index-regional entrepreneurship, technological readiness and institution quality index (RETRIQ) of regional entrepreneurship, technology readiness and quality of institution to measure regional competitiveness. This study, also, aims to test econometrically the effectiveness of the index in capturing the economic performance of the sub-national regions. Design/methodology/approach The data of eight indicators used in the index are from sources available freely in the public domain. The causal relationship analysis is done using panel data of 10 years from 2008 to 2017 for 32 Indian states/union territories. The generalized method of moments (GMM) is used for this dynamic regression estimation. Findings Based on RETRIQ, 32 states and union territories of India have ranked. The estimation using GMM shows a significant association between the composite index and economic growth. Research limitations/implications The limitations of the study include the broad assumption that these sub-national regions belong to a uniform macro-economic and technology environment and data constraints as it is a longitudinal study. Then, the implication of the study is that the composite index-RETRIQ could capture differences in regional competitiveness explaining regional economic disparity. Practical implications The index will be useful for policy implications in the assessment of competitiveness disparity. Originality/value It is a composite index of regional entrepreneurship, technological readiness and quality of the institution. The panel data across states along 10 years series is novel.

Does broadband infrastructure really affect consumption of rural households? – A quasi-natural experiment evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianxiang Wan ◽  
Changteng Nie ◽  
Fan Zhang
Keyword(s):  
Social Development ◽  
Rural Areas ◽  
Natural Experiment ◽  
Rural Households ◽  
Pilot Project ◽  
Household Consumption ◽  
Rural Household ◽  
High Quality ◽  
Content Type ◽  
The Impact

PurposeAs an important public infrastructure, broadband has absorbed a large amount of investment in China. However, how and to what extent these investments affect economic and social development is largely unknown. The purpose of this paper is to analyze the impact of broadband infrastructure construction on consumption of rural households, using an exogenous policy shock introduced by the China's “Broadband Countryside” pilot project.Design/methodology/approachUsing the tracking sample data of China Household Financial Survey in 2013 and 2015, this study estimates the effect of broadband construction on rural household consumption and draws causality between them relying on a quasi-natural experiment based on an exogenous policy shock.FindingsThe difference-in-difference estimates show that broadband construction has significantly increased rural household consumption by 16.69%. This positive promotion effect is mainly achieved through mobile phone access to the Internet, while penetration of computer crowds out rural household consumption. Further research find that broadband construction has increased rural household consumption related to daily life and high-quality household consumption, but not statistically significant for the latter, and it has not helped to promote the consumption upgrading of rural households.Originality/valueThis study contributes to the understanding of the positive status of broadband infrastructure in economic and social development by analyzing the impact of broadband infrastructure construction on rural household consumption. This study expands the content of consumption to rural households, especially high-quality consumption and consumption upgrading in rural areas, which provides the possibility to further tap the consumption potential of rural market. The study is the first to explore how broadband infrastructure construction affects consumption of rural households using a quasi-natural experiment.

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