IDEAS home Printed from https://ideas.repec.org/a/fao/tejade/v3y2006i2p180-224.html
   My bibliography  Save this article

Rural non-farm livelihoods in transition economies: emerging issues and policies

Author

Listed:
  • Junior Davis

    (NRI, UK)

Abstract

This article reviews key conceptual issues related to the development of the rural non-farm economy (RNFE) in a transition context and analyses available empirical evidence on the role of RNFE during recovery from the transition recession. Growth in the RNFE in the transition countries took place during the recession transition, which shows that it may be distress driven, but the paper explores other factors which may be driving the RNFE. It looks at the RNFE in light of the factors driving income growth and inequality, i.e. endowments and institutions. It concludes that, although not uniform across transition countries, the RNFE should be seen as a component of a growth strategy rather than as a temporary “refuge” or survival one. The patterns of growth of the RNFE will closely follow those of general economic recovery as well as the developments in the agricultural sector itself.

Suggested Citation

  • Junior Davis, 2006. "Rural non-farm livelihoods in transition economies: emerging issues and policies," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(2), pages 180-224.
  • Handle: RePEc:fao:tejade:v:3:y:2006:i:2:p:180-224
    as

    Download full text from publisher

    File URL: ftp://ftp.fao.org/docrep/fao/009/ah756e/ah756e00.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
    2. Junior Davis & Angela Gaburici, 2005. "Non-farm employment in small-scale enterprises in Romania: policy and development issues," Development and Comp Systems 0510019, University Library of Munich, Germany.
    3. Peter Hazell, 1998. "Agricultural Growth, Poverty, and the Environment: Introduction," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 1-1, September.
    4. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
    5. Bryden, John & Bollman, Ray, 2000. "Rural employment in industrialised countries," Agricultural Economics, Blackwell, vol. 22(2), pages 185-197, March.
    6. Heidhues, Franz & Davis, Junior R & Schrieder, Gertrud, 1998. "Agricultural Transformation and Implications for Designing Rural Financial Policies in Romania," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 351-372.
    7. Raimund Jehle, 1998. "Bottlenecks of SME in services and craft enterprises and their elimination in rural areas of the Czech Republic: A trial to use traditional regional economic measures," ERSA conference papers ersa98p26, European Regional Science Association.
    8. Macours, Karen & Swinnen, Johan F M, 2002. "Patterns of Agrarian Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 365-394, January.
    9. Edelman, Mark A., Dr., 1997. "The Adequacy of Rural Capital Markets: Public Purpose and Policy Options," ISU General Staff Papers 199709040700001292, Iowa State University, Department of Economics.
    10. repec:lic:licosd:11502 is not listed on IDEAS
    11. K.G. Balcombe & J.R. Davis, 1996. "An application of cointegration theory in the estimation of the Almost Ideal Demand system for food consumption in Bulgaria," Agricultural Economics, International Association of Agricultural Economists, vol. 15(1), pages 47-60, September.
    12. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 331-350.
    13. Woldehanna, Tassew & Lansink, Alfons Oude & Peerlings, Jack, 2000. "Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms," Agricultural Economics, Blackwell, vol. 22(2), pages 163-171, March.
    14. Daniel Start, 2001. "The Rise and Fall of the Rural Non‐farm Economy: Poverty Impacts and Policy Options," Development Policy Review, Overseas Development Institute, vol. 19(4), pages 491-505, December.
    15. Johan F. M. Swinnen & Ayo Heinegg, 2002. "On the political economy of land reforms in the former Soviet Union," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 1019-1031.
    16. Thomas Reardon & J. Edward Taylor & Kostas Stamoulis & Peter Lanjouw & Arsenio Balisacan, 2000. "Effects of Non‐Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 266-288, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ognjen Žurovec & Pål Olav Vedeld, 2019. "Rural Livelihoods and Climate Change Adaptation in Laggard Transitional Economies: A Case from Bosnia and Herzegovina," Sustainability, MDPI, vol. 11(21), pages 1-27, November.
    2. Rusali, Mirela, 2009. "Socio-Economic Resource and Structures for the Sustainable Development of Rural Economy," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 6(2), pages 199-216.
    3. Hasanov, Shavkat & Sanaev, Golib, 2018. "Non-farm employment trends and policy in rural areas of Samarkand region (Uzbekistan)," IAMO Discussion Papers 279145, Institute of Agricultural Development in Transition Economies (IAMO).
    4. Gil, J.M. & Diaz-Montenegro, J. & Varela, E., 2018. "A Bias-Adjusted Three-Step approach for analysing the livelihood strategies and the asset mix of cacao producers in Ecuador," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277215, International Association of Agricultural Economists.
    5. Selahattin PekÅŸen, 2015. "A Current Overview of the Anatolian Bathroom Culture and Equipment in Terms of Design," European Journal of Social Sciences Education and Research Articles, Revistia Research and Publishing, vol. 2, ejser_v2_.
    6. Mackenzie, Lesego & Mburu, John & Irungu, Patrick, 2017. "Analysis Of Household Choice And Determinants Of Livelihood Diversification Activities In Chobe District, Botswana," Dissertations and Theses 269268, University of Nairobi, Department of Agricultural Economics.
    7. Traikova, Diana, 2013. "Determinants of non-farm entrepreneurial intentions in a transitional context: Evidence from rural Bulgaria," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 72, number 72.
    8. Chmieliński, Paweł, 2016. "Selected aspects of the development of rural systems in Visegrad Group countries," Rural Areas and Development, European Rural Development Network (ERDN), vol. 13, pages 1-12.
    9. Quang Tran, Tuyen, 2012. "A review on the link between nonfarm activities, land and rural livelihoods in Vietnam and developing countries," MPRA Paper 55850, University Library of Munich, Germany, revised 17 Nov 2013.
    10. Independent Evaluation Group, 2016. "Growing the Rural Nonfarm Economy to Alleviate Poverty," World Bank Publications - Books, The World Bank Group, number 28971.
    11. Ndubuisi Obeka Chukwu & Jude Okechukwu Chukwu, 2023. "Drivers of Households’ off-the-farm Income Diversification Patterns in Nigeria: Panel Evidence Using General Household Survey Data," Review of Development and Change, , vol. 28(1), pages 67-89, June.
    12. AMPAW Samuel & NKETIAH-AMPONSAH Edward & SENADZA Bernardin, 2017. "Urban Farm-Nonfarm Diversification, Household Income And Food Expenditure In Ghana," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(2), pages 6-19, August.
    13. repec:zbw:iamodp:279145 is not listed on IDEAS
    14. Hasanov, Shavkat & Sanaev, Golib, 2018. "Non-farm employment trends and policy in rural areas of Samarkand region (Uzbekistan)," IAMO Discussion Papers 176, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    15. George Kwadwo Anane & Patrick Brandful Cobbinah & Job Kwame Manu, 2013. "Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(8), pages 1003-1017, August.
    16. Mahamadou Roufahi Tankari, 2020. "Rainfall variability and farm households’ food insecurity in Burkina Faso: nonfarm activities as a coping strategy," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(3), pages 567-578, June.
    17. Jalang'o, Dorcas Anyango, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Research Theses 276431, Collaborative Masters Program in Agricultural and Applied Economics.
    18. Walelign, Solomon Zena & Jiao, Xi, 2017. "Dynamics of rural livelihoods and environmental reliance: Empirical evidence from Nepal," Forest Policy and Economics, Elsevier, vol. 83(C), pages 199-209.
    19. Koomson, Isaac & Orkoh, Emmanuel & Ahmad, Shabbir, 2023. "Non-farm entrepreneurship, caste, and energy poverty in rural India," Energy Economics, Elsevier, vol. 127(PA).
    20. Myrzaliyev, Borash S. & Chetin, Samet & Azretbergenova, Gulmira Zh., 2022. "Improving the Evaluation of the Competitive Ability of the National Market of Meat and Meat Products of Kazakhstan," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 13(03), September.
    21. Jalang’o, Dorcas Anyango & Otieno, David Jakinda & Oluoch-Kosura, Willis, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Dissertations and Theses 269269, University of Nairobi, Department of Agricultural Economics.

    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. Junior Davis & Dirk Bezemer, 2005. "Key emerging and conceptual issues in the development of the rural non-farm economy in developing countries and transition economies," Development and Comp Systems 0510017, University Library of Munich, Germany.
    2. Junior Davis, 2005. "The rural non-farm economy, Livelihoods and their," Development and Comp Systems 0510016, University Library of Munich, Germany.
    3. Pascual, Unai & Barbier, Edward B., 2005. "On- And Off-Farm Labor Decisions By Slash-And-Burn Farmers In Yucatan (Mexico)," Environmental Economy and Policy Research Discussion Papers 31926, University of Cambridge, Department of Land Economy.
    4. Dirk J. Bezemer & Jurgita Rutkauskaite, 2003. "Income diversity in rural Lithuania: benefits, barriers, and incentives," UCL SSEES Economics and Business working paper series 32, UCL School of Slavonic and East European Studies (SSEES).
    5. Dirk Bezemer & Junior Davis, 2005. "The rural non-agricultural economy in transition countries: Enterprise level findings from Armenia," Development and Comp Systems 0510020, University Library of Munich, Germany.
    6. Thia C. Hennessy & Tahir Rehman, 2008. "Assessing the Impact of the ‘Decoupling’ Reform of the Common Agricultural Policy on Irish Farmers’ Off‐farm Labour Market Participation Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 41-56, February.
    7. Dries, Liesbeth & Ciaian, Pavel & Kancs, d’Artis, 2012. "Job creation and job destruction in EU agriculture," Food Policy, Elsevier, vol. 37(6), pages 600-608.
    8. Swinnen, Johan F.M., 2005. "Agricultural transformation: Lessons from experience," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), pages 1-20, March.
    9. Sauer, Johannes & Finger, Robert, 2014. "Climate Risk Management Strategies in Agriculture – The Case of Flood Risk," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172679, Agricultural and Applied Economics Association.
    10. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    11. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2011. "Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114597, European Association of Agricultural Economists.
    12. ROZELLE, Scott & SWINNEN, Johan F.M., 2009. "Why did the communist party reform in China, but not in the Soviet Union? The political economy of agricultural transition," China Economic Review, Elsevier, vol. 20(2), pages 275-287, June.
    13. repec:lic:licosd:35514 is not listed on IDEAS
    14. Bouchakour, Radhia & Saad, Mohammed, 2020. "Farm and farmer characteristics and off-farm work: evidence from Algeria," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), April.
    15. Hayatullah Ahmadzai, 2017. "Status, patterns, and microeconomic drivers of the extent of diversity in crop production: Evidence from Afghanistan," Discussion Papers 2017-07, University of Nottingham, CREDIT.
    16. Buchenrieder, Gertrud & Hanf, Jon Henrich & Pieniadz, Agata, 2009. "20 years of transition in the agri-food sector," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(07), pages 1-9, October.
    17. Renwick, A. & Ma, W. & Nie, P. & Tang, J., 2018. "The Joint Effects of Off-farm Work and Smartphone Use on Household Income in Rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277304, International Association of Agricultural Economists.
    18. de Mey, Yann & Wauters, Erwin & Lips, Markus & Schmid, Dirk & Vancauteren, Mark & Van Passel, Steven, 2014. "Farm household risk balancing in Switzerland and Belgium: an econometric and survey approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 186678, European Association of Agricultural Economists.
    19. Johan Swinnen & Liesbet Vranken, 2010. "Reforms and agricultural productivity in Central and Eastern Europe and the Former Soviet Republics: 1989–2005," Journal of Productivity Analysis, Springer, vol. 33(3), pages 241-258, June.
    20. Abdul-Salam, Yakubu & Roberts, Deborah, 2018. "Determinants of off-farm work and its effect on agricultural input intensity," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273486, Agricultural Economics Society.
    21. Macours, Karen & Swinnen, Johan F.M., 2000. "Agrarian Transitions and Productivity Patterns: Synthesis of Experiences in Eastern Europe, the former Soviet Union and East Asia," 2000 Conference, August 13-18, 2000, Berlin, Germany 197196, International Association of Agricultural Economists.

    More about this item

    Keywords

    Transition economies; rural livelihoods; rural non-farm economy; rural poverty; rural development.;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    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:fao:tejade:v:3:y:2006:i:2:p:180-224. 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: Gustavo Anríquez (email available below). General contact details of provider: https://edirc.repec.org/data/faoooit.html .

    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.