Ramifications of Households Non-farm Income on Agricultural Productivity: Evidence from Rural Area of Pakistan

Yıl 2020, Cilt: 17 Sayı: 2, 108 - 123, 27.05.2020

Md.salamun Rashidin , Sara Javed Dr. Bin Liu

https://doi.org/10.33462/jotaf.518975

Öz

In Pakistan, agriculture sector currently contributes up to 28 percent to in GDP. Due to the
development of
modern science and technology, rural household source of income is altering. Lots
of research suggested that non-farm income is the main source of income for
rural area. This study investigates the effects of non-farm income on
agriculture productivity in Pakistan. The current research accumulated data
from Pakistan Social and Living Standards Measurement Survey (PSLM) 2014-15.
Pakistan Federal Bauru of Statistics has developed its own sampling frame for
rural and urban areas. Researcher used the Heckman’s two-step procedure to tackle the
problem of endogeneity and selection bias. The first phase of probit regression
coefficient indicates that
the availability of banks,
motorable roads, forest, telecommunication substructure, montane grasslands and shrublands
zone are substantial to clarify the non-farm income. On the other hand, the second
stage of OLS regression exhibited a significant negative association between
non-farm income and per-capita farm income.

Anahtar Kelimeler

Agricultural Productivity, Non-farm income, Endogeneity

Kaynakça

• Reardon, T., J.E. Taylor, K. Stamoulis, P. Lanjouw and A. Balisacan. 2000. Effects of non‐farm employment on rural income inequality in developing countries: an investment perspective. J. Agric. Econom. 51(2): 266-288. https://doi.org/10.1111/j.1477-9552.2000.tb01228.x
• De Janvry, A., E. Sadoulet. And N. Zhu. 2005. The role of non-farm incomes in reducing rural poverty and inequality in China. Department of Agricultural and Resource Economics, UCB.
• GOP. 2014. Economic Survey of Pakistan. 2013-2014. Economic Advisor’s Wing, Finance Division, Islamabad, Pakistan.
• Lisa Pfeiffer; Alejandro López‐Feldman; J. Edward Taylor (2009), Is off‐farm income reforming the farm? Evidence from Mexico; Agricultural Economics, Volume: 40, Issue: 2: Pages 125-138.
• World Wildlife Fund, ed. (2001). "Northwestern Himalayan alpine shrub and meadows". WildWorld Ecoregion Profile. National Geographic Society. Archived from the original on 2010-03-08.
• Sumner, DA. 1982. The labor supply of farmers. American Journal of Agricultural Economics, 64: 449–509.
• Abdulai, A and Delgado, CL. 1999. Determinants of nonfarm earnings-based husbands and wives in North Ghana. American Journal of Agricultural Economics, 81: 117–30.
• Lanjouw, J. O. (1999); Rural Non-agricultural Employment and Poverty in Ecuador Article in Economic Development and Cultural Change 48(1):91-122 • February 1999; DOI: 10.1086/452448
• Islam, Nurul. 1997. The Non-farm Sector and Rural Development: Review of Issues and Evidence. Food Agriculture and Environment Discussion Paper 22. Washington: International Food Policy Research Institute.
• Population census 2017: Men outnumber women in Pakistan (25 Augest,2017) https://www.samaa.tv/news/2017/08/population-census-2017-men-outnumber-women-pakistan/
• Abdulai, A., and Delgado, C. L. (1999), Determinants of Non-farm Earnings of Farm Based Husbands and Wives in Northern Ghana. American Journal of Agricultural Economics, 81(1), 117-130.
• Davis, J. R. (2003), The Rural Non-farm Economy, Livelihoods, and their Diversification: Issues and Options. (NRI report No: 2753). Chatham, Kent, UK: Natural Resources Institute.
• Dimova, Ralitza, and Kunal Sen. (2010) Is household income diversification a means of survival or a means of accumulation? Panel data evidence from Tanzania. BWPI Working Paper 122
• Ellis F. (2000) Rural Livelihood and Diversity in Developing Countries. New York; Oxford University Press.
• Ellis, F. (1998) Household strategies and rural livelihood diversification. Journal of Development Studies, 35: 1- 38.
• Adams, R. H. and HE, J. J (1995), Sources of income inequality and poverty in rural Pakistan. International Food Policy Research Institute. Research Report, No. 102. Washington DC
• Barrett, C.B. et.al. (2001), Non- farm Income Diversification and Household Livelihood Strategies in RuralAfrica Concepts, Dynamics and Policy Implications.
• Chang, H. and Boisvert, R. N. (2009) The Conservation Reserve Program, Off-farm Work, and Farm Household Technical Efficiencies. (Working paper 2009-33). Ithaca, New York, USA: Cornell University, Department of Applied Economics and Management.
• Ellis, F. and Freeman, H.A. (2004) Rural livelihoods and poverty reduction strategies in four African countries. Journal of Development Studies, 40: 1-30.
• Ellis, F. and Mdoe, N. (2003) Livelihoods and Rural Poverty Reduction in Tanzania. World Development Report Vol 31(8):1367-1384.
• Pakistan Social and Living Measurement Survey (PSLM) 2014-15 [http://www.pbs.gov.pk/content/pakistan-social-and-living-standards-measurement]
• Gordon, A., and Craig, C. (2001), Rural Non-farm Activities and Poverty Alleviation in Sub-Saharan Africa.
• Natural Resources Institute, Social and Economic Development Department Policy Series 14. Chatham, UK
• Haggblade, S., et. al. (2005), The Rural Non-Agricultural Economy: Pathway out of Poverty or Pathway in?Paper Presented at the Meeting of the International Food Policy Research Institute on the Future of Small-Farms, Washington D.C.
• Heckman, J.J. (1979), Sample Selection Bias as a Specification Error. Econometrica 47(1), 153-161
• Huffman, W. E. (1991), Agricultural household models: Survey and critique. In M. C. Hallberg, J. L. Findeis, and D. A.Lass (Eds.), Multiple job-holding among farm families (pp. 79-111). Ames, IA: Iowa State University Press.
• Islam, N. (1997), The Non-farm Sector and Rural Development. Food, Agriculture and Environment Discussion Paper No. 22.
• Lanjouw, P. (1999) Rural Non-Agricultural Employment and Poverty in Ecuador, Economic Development and Cultural Change. 48(1) October
• Maddala, G. S. (1983), Limited-Dependent and Qualitative Variables in Economics, New York:CambridgeUniversity Press, pp. 257-91
• Man, N., and Sadiya, S. I. (2009), Off-farm Employment Participation among Paddy Farmers in the MudaAgricultural Development Authority and Kemasin Semerak Granary areas of Malaysia. Asia-Pacific Development Journal, 16(2), 142-157.
• Marsland, N. et. al. (2000), Policy and Research on the Rural Non-farm Economy: A review of Conceptual, Methodological and Practical Issues. Chatham, UK: Natural Resources Institute.
• Reardon, T. (1997), Using Evidence of Household Income Diversification to Inform. A Study of the Rural Non- Farm Labour Market in Africa. World Development, 25(5), 735–747.
• Reardon, T. (2001), Rural Non-farm Employment and Incomes in Latin America: Overview and PolicyImplications. World Development, 29(3), 395-409.
• Reardon, T., et.al.(1994), Links between Non-farm Income and Farm Investments in Africa Households: Adding the Capital Market Perspective. American Journal of Agricultural Economics, 76(5), 1172-1176.
• Ruben, R. and van den Berg, M. (2001), Non-farm employment and poverty alleviation of rural farm households in Honduras. World Development, 26: 549-560.
• Seini, A. W. (2002), Agricultural Growth and Competitiveness under Policy Reforms in Ghana. Technical
• Publication No. 61). Legon: Univerity of Ghana, Institute of Statistical, Social and Economic Research (ISSER).
• Senadza, B. (2011) “Non-farm Income Diversification in Rural Ghana: Determinants and Implications forIncome Distribution and Welfare”, VDM Verlag Dr. Mueller
• Sumner, D. A. (1982) The Off-farm Supply of Farmers. American Journal of Agricultural Economics, 64(3), 499-509.
• Woldehanna T. (2000) Economic Analysis and Policy Implications of Farm and Off-farm Employment, A Case Study in Tigray Region of Ethiopia. Unpublished Master’s Thesis, Wageningen University, Wageningen, the Netherlands.
• Lien, G., Kumbhakar, S., & Hardaker, B. (2010). Determinants of off-farm work and its effects on farm performance: the case of Norwegian grain farmers. Agricultural Economics, 1-10
• Delgado, C., Hopkins, J., Kelly, V., Hazell, P., McKenna, A., Gruhn, P. (1998). Agricultural growth linkages in Sub-Saharan Africa. Washington, DC: IFPRI