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The impact of urban growth on agricultural and rural non-farm growth in Kenya

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  • Binswanger-Mkhize, Hans P.
  • Johnson, Timothy
  • Samboko, Paul Chimuka
  • You, Liangzhi

Abstract

To estimate the impact of urban growth on agricultural and rural nonfarm income growth we develop an urban gravity variable that reflects the economic activity of a city– total nighttime light emitted – which is a proxy income of each city. The light intensities were transformed into urban gravity variables depending on the distance of sample villages from the city, and their growth rates used for the analysis in regression equations. The key findings are as follows: Equal urban growth in all locations has an elasticity of 0.50 on agricultural income growth, and of 0.19 on rural non-farm income growth. Urban growth also has a large effect on education, followed by commercialization and then on the use of modern varieties. These in turn have a strong impact on agricultural and rural non-farm income. National urban growth has a larger impact on agricultural and rural non-farm growth than local urban growth. Once we account for the other control variables (roads, education, commercialization, modern varieties), the urban growth impact on agricultural growth is cut in half and for rural non-farm growth the urban growth impact disappears. For non-farm income almost the full impact of urban growth can be explained by its impacts on education. The elasticities of urban growth with respect to agricultural incomes via education, commercialization and HYV are 0.12, 0.10 and 0.05 respectively. Curiously, we cannot show an impact of agricultural growth on rural non-farm income growth.

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  • Binswanger-Mkhize, Hans P. & Johnson, Timothy & Samboko, Paul Chimuka & You, Liangzhi, 2016. "The impact of urban growth on agricultural and rural non-farm growth in Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249274, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:249274
    DOI: 10.22004/ag.econ.249274
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    2. Diao, Xinshen & Fang, Peixun & Magalhaes, Eduardo & Pahl, Stefan & Silver, Jed, 2017. "Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana," IFPRI discussion papers 1599, International Food Policy Research Institute (IFPRI).
    3. Diao, Xinshen & Magalhaes, Eduardo & Silver, Jed, 2019. "Cities and rural transformation: A spatial analysis of rural livelihoods in Ghana," World Development, Elsevier, vol. 121(C), pages 141-157.
    4. Sabyasachi Tripathi & Chetana Rani, 2018. "The impact of agricultural activities on urbanization: evidence and implications for India," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 22(1), pages 123-144, January.
    5. Juan Soto & Milena Vargas & Julio A. Berdegué, 2018. "How Large Are the Contributions of Cities to the Development of Rural Communities? A Market Access Approach for a Quarter Century of Evidence from Chile," Documentos de Trabajo 17060, The Latin American and Caribbean Economic Association (LACEA).
    6. Sheng, Yu & Zhao, Yuhan & Zhang, Qian & Dong, Wanlu & Huang, Jikun, 2022. "Boosting rural labor off-farm employment through urban expansion in China," World Development, Elsevier, vol. 151(C).
    7. Li Ma & Shijun Wang & Anders Wästfelt, 2022. "The Poverty of Farmers in a Main Grain-Producing Area in Northeast China," Land, MDPI, vol. 11(5), pages 1-16, April.
    8. Qianwen Duan & Minghong Tan, 2019. "Spatial and Temporal Variations of Forest Cover in Developing Countries," Sustainability, MDPI, vol. 11(6), pages 1-15, March.

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    Community/Rural/Urban Development; Land Economics/Use;

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