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Transformation of the Rural Nonfarm Economy During Rapid Urbanization and Structural Transformation in Developing Regions

Author

Listed:
  • Peter Hazell

    (International Food Policy Research Institute (IFPRI), Washington, DC, USA)

  • Steven Haggblade

    (Department of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, Michigan, USA)

  • Thomas Reardon

    (Department of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, Michigan, USA)

Abstract

This article reviews the past 25 years of empirical research on the rural nonfarm economy (RNFE) in developing countries; that literature has evolved in ways that track and mirror the rural transformation itself. Since 2000, rapid urbanization, structural transformation, and a sharp series of economic, climate, and disease shocks have influenced trajectories in the RNFE. It has grown to become, on average, the predominant source of income for rural households in developing countries. Both segments of the RNFE—activities linked to agricultural value chains as well as those unrelated to the agricultural sector—have grown. Understanding how each component of the RNFE influences rural incomes, employment, resilience, women, youth, and farming and natural resource management practices is, therefore, more important than ever.

Suggested Citation

  • Peter Hazell & Steven Haggblade & Thomas Reardon, 2024. "Transformation of the Rural Nonfarm Economy During Rapid Urbanization and Structural Transformation in Developing Regions," Annual Review of Resource Economics, Annual Reviews, vol. 16(1), pages 277-299, October.
    • Handle: RePEc:anr:reseco:v:16:y:2024:p:277-299
    DOI: 10.1146/annurev-resource-101623-105713
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    More about this item

    Keywords

    agricultural value chains; rural nonfarm economy; structural transformation; urbanization; rural employment; rural transformation;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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