109 research outputs found

    The role of non-farm activities in the rural economy

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    A research paper on the non-farm economic activities in the marginalized rural economy.This paper draws upon recent research, to delineate the non-farm rural economy; its magnitude, its anatomy, and how it changes over time. We present evidence that non-farm activities not only make a major welfare contribution with respect to equity and income-smoothing, but that many of these activities add more to gross domestic product (GDP) than the substitute goods and services supplied by technically-advanced capital intensive producers. Finally, we argue that the sector is no more or less passive than any other sector in the economy, and that it can make substantial contributions to agricultural growth.The research supporting the preparation the proceedings papers was financed by the U.S. Agency for International Development, Bureau of Science and Technology; Bureau for Africa; and the Southern Africa Regional Programme; under a Food Security in Africa cooperative agreement

    Employment dynamics in the rural nonfarm sector in Ethiopia Do the poor have time on their side?

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    We study rural employment transitions in Ethiopia between farming and both low- and high-return nonfarm employment. We find that initial asset holdings and access to saving and credit are important factors for transition into high-return rural nonfarm employment and that households’ participation in high-return rural nonfarm activities is robust to their experience of health shocks. However, shocks that affect their wealth or liquidity may trigger descents into low-return nonfarm employment. On the other hand, shocks that reduce agricultural income motivate transitions into high-return rural nonfarm employment

    Business constraints and growth potential of micro and small manufacturing enterprises in Uganda

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    Ugandan micro and small enterprises (MSEs) still perform poorly. Studies associating poor performance of manufacturers with lack of finance and low investment ignore micro enterprises. Those focusing on MSEs are either exploratory in nature or employ a descriptive analysis, which cannot show the extent to which business constraints explain the performance of MSEs. Thus, this paper tries to examine the extent to which the growth of MSEs is associated with business constraints while controlling for owners’ attributes and firms’ characteristics. The results reveal that MSEs’ growth potential is negatively associated with limited access to productive resources (finance and business development services), high taxes and lack of market access
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