IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v37y2009i3p645-660.html
   My bibliography  Save this article

Urban Proximity, Agricultural Potential and Rural Non-farm Employment: Evidence from Bangladesh

Author

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

Abstract

Summary This paper presents empirical evidence on the relative importance of farm and urban linkages for rural non-farm employment in Bangladesh. The results suggest that people are more likely to be employed in well-paid wage employment and self-employment in the non-farm sector if they are closer to urban centers. Those who are further away from such centers are even less likely to be in well-paying non-farm jobs if they are living in areas with greater agricultural potential. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for non-farm development in Bangladesh.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:645-660
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(08)00239-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    3. 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.
    4. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
    5. 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.
    6. 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).
    7. Marcel Fafchamps & Forhad Shilpi, 2003. "The spatial division of labour in Nepal," Journal of Development Studies, Taylor & Francis Journals, vol. 39(6), pages 23-66.
    8. van de Walle, Dominique, 2002. "Choosing Rural Road Investments to Help Reduce Poverty," World Development, Elsevier, vol. 30(4), pages 575-589, April.
    9. D. Gale Johnson, 2000. "Population, Food, and Knowledge," American Economic Review, American Economic Association, vol. 90(1), pages 1-14, March.
    10. Uwe Deichmann & Somik V. Lall & Stephen J. Redding & Anthony J. Venables, 2008. "Industrial Location in Developing Countries," The World Bank Research Observer, World Bank, vol. 23(2), pages 219-246, May.
    11. Fafchamps, Marcel, 1997. "Mobile Capital, Local Externalities, and Industrialization," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 345-365, December.
    12. Hymer, Stephen H & Resnick, Stephen, 1969. "A Model of an Agrarian Economy with Nonagricultural Activities," American Economic Review, American Economic Association, vol. 59(4), pages 493-506, Part I Se.
    13. Hossain, Mahabub, 1988. "Nature and impact of the Green Revolution in Bangladesh:," Research reports 67, International Food Policy Research Institute (IFPRI).
    14. Hazell, Peter B. & Haggblade, Steven, 1990. "Rural - urban growth linkages in India," Policy Research Working Paper Series 430, The World Bank.
    15. Vernon Henderson, 2002. "Urbanization in Developing Countries," The World Bank Research Observer, World Bank, vol. 17(1), pages 89-112.
    16. Mahabub Hossain, 2004. "Rural Non-Farm Economy in Bangladesh: A View from Household Surveys," CPD Working Paper 40, Centre for Policy Dialogue (CPD).
    17. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    18. Marcel Fafchamps & Forhad Shilpi, 2005. "Cities and Specialisation: Evidence from South Asia," Economic Journal, Royal Economic Society, vol. 115(503), pages 477-504, April.
    19. 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.
    20. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    Full references (including those not matched with items on IDEAS)

    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, 2008. "Spatial specialization and farm-nonfarm linkages," Policy Research Working Paper Series 4611, The World Bank.
    2. Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank.
    3. Marcel Fafchamps & Forhad Shilpi & The World Bank, 2004. "Isolation and Subjective Welfare," Economics Series Working Papers 216, University of Oxford, Department of Economics.
    4. Forhad Shilpi & Dina Umali‐Deininger, 2008. "Market facilities and agricultural marketing: evidence from Tamil Nadu, India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 281-294, November.
    5. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    6. 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.
    7. 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.
    8. 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.
    9. Pham, Hung T, 2006. "Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002," MPRA Paper 6476, University Library of Munich, Germany.
    10. Escobal, Javier, 2005. "The Role of Public Infraestructure in Market Development in Rural Peru," MPRA Paper 727, University Library of Munich, Germany.
    11. Emran, M. Shahe & Shilpi, Forhad, 2018. "Beyond dualism: Agricultural productivity, small towns, and structural change in Bangladesh," World Development, Elsevier, vol. 107(C), pages 264-276.
    12. Lanjouw, Jean O. & Lanjouw, Peter, 1995. "Rural nonfarm employment : a survey," Policy Research Working Paper Series 1463, The World Bank.
    13. Emran,M. Shahe & Shilpi,Forhad J. & Emran,M. Shahe & Shilpi,Forhad J., 2015. "Do land market restrictions hinder structural change in a rural economy ? evidence from Sri Lanka," Policy Research Working Paper Series 7525, The World Bank.
    14. Rijkers, Bob & Soderbom, Mans & Loening, Josef, 2009. "Mind the gap ? a rural-urban comparison of manufacturing firms," Policy Research Working Paper Series 4946, The World Bank.
    15. Marcel Fafchamps & Forhad Shilpi, 2009. "Isolation and Subjective Welfare: Evidence from South Asia," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 641-683, July.
    16. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    17. 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.
    18. repec:lic:licosd:37416 is not listed on IDEAS
    19. Ravallion, Martin, 2002. "Externalities in rural development - evidence for China," Policy Research Working Paper Series 2879, The World Bank.
    20. Headey, Derek D. & Jayne, T.S., 2014. "Adaptation to land constraints: Is Africa different?," Food Policy, Elsevier, vol. 48(C), pages 18-33.
    21. 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.

    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:eee:wdevel:v:37:y:2009:i:3:p:645-660. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.