The Returns to Participation in the Non-farm Sector in Rural Rwanda

The Returns to Participation in the Non-farm Sector in Rural Rwanda
Author: Andrew Dabalen
Publisher: World Bank Publications
Total Pages: 33
Release: 2004
Genre:
ISBN:

"Dabalen, Paternostro, and Pierre investigate the differences in outcomes (earnings and consumption) between individuals (households) who participate in the nonfarm sector and those who do not. They use propensity score matching methods where they create appropriate comparison groups of individuals and households. First the authors find that nonfarm self-employed individuals in rural Rwanda have significantly higher earnings than farm workers and nonfarm formal employees. Second, they show that the benefits to nonfarm self-employment are much higher among the nonpoor than among the poor. Third, the authors show that diversified households-- those with a farm and a nonfarm enterprise-- are less likely to be poor. Finally, farm households who do not participate in the market have significantly lower consumption levels than households that do. However, the benefits to market participation appear to matter less for the poor than for the nonpoor. The authors find little difference in expenditures between market participants and nonmarket participants for comparable households in the bottom 40 percent of the expenditure distribution. This paper-- a product of the Poverty Reduction Group, Poverty Reduction and Economic Management Network-- is part of a larger effort in the network to understand rural nonfarm employment determinants"-- World Bank web site.

The Returns to Participation in the Non-farm Sector in Rural Rwanda

The Returns to Participation in the Non-farm Sector in Rural Rwanda
Author: Andrew Dabalen
Publisher: World Bank Publications
Total Pages: 40
Release: 2004
Genre: Rural development
ISBN:

"Dabalen, Paternostro, and Pierre investigate the differences in outcomes (earnings and consumption) between individuals (households) who participate in the nonfarm sector and those who do not. They use propensity score matching methods where they create appropriate comparison groups of individuals and households. First the authors find that nonfarm self-employed individuals in rural Rwanda have significantly higher earnings than farm workers and nonfarm formal employees. Second, they show that the benefits to nonfarm self-employment are much higher among the nonpoor than among the poor. Third, the authors show that diversified households-- those with a farm and a nonfarm enterprise-- are less likely to be poor. Finally, farm households who do not participate in the market have significantly lower consumption levels than households that do. However, the benefits to market participation appear to matter less for the poor than for the nonpoor. The authors find little difference in expenditures between market participants and nonmarket participants for comparable households in the bottom 40 percent of the expenditure distribution. This paper-- a product of the Poverty Reduction Group, Poverty Reduction and Economic Management Network-- is part of a larger effort in the network to understand rural nonfarm employment determinants"-- World Bank web site.

The Returns to Participation in the Nonfarm Sector in Rural Rwanda

The Returns to Participation in the Nonfarm Sector in Rural Rwanda
Author: Andrew Dabalen
Publisher:
Total Pages:
Release: 2013
Genre:
ISBN:

In this paper, we investigate the differences in outcomes (earnings and consumption) between individuals (households) who participate in the non-farm sector and those who do not. We use propensity score matching methods, where we create appropriate comparison groups of individuals and households. First we find that non-farm self-employed individuals in rural Rwanda have significantly higher earnings than farm workers and non-farm formal employees. Second, we show that the benefits to non-farm self-employment are much higher among the non-poor than among the poor. Third, we show that diversified households, those with a farm and a non-farm enterprise, are less likely to be poor. Finally, farm households who do not participate in the market have significantly lower consumption levels than households that do. However, the benefits to market participation appear to matter less for the poor than for the non-poor. We find little difference in expenditures between market participants and non-market participants, for comparable households in the bottom 40% of the expenditure distribution.

Credit Constraints, Agricultural Productivity, and Rural Nonfarm Participation

Credit Constraints, Agricultural Productivity, and Rural Nonfarm Participation
Author: Daniel Ayalew Ali
Publisher:
Total Pages: 30
Release: 2017
Genre:
ISBN:

Although the potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. This study uses a direct elicitation approach for a national sample of Rwandan rural households to assess empirically the extent and nature of credit rationing in the semi-formal sector and its impact using an endogenous sample separation between credit-constrained and unconstrained households. Being credit constrained reduces the likelihood of participating in off-farm self-employment activities by about 6.3 percent while making participation in low-return farm wage labor more likely. Even within agriculture, elimination of all types of credit constraints in the semi-formal sector could increase output by some 17 percent. Two suggestions for policy emerge from the findings. First, the estimates suggest that access to information (education, listening to the radio, and membership in a farm cooperative) has a major impact on reducing the incidence of credit constraints in the semi-formal credit sector. Expanding access to information in rural areas thus seems to be one of the most promising strategies to improve credit access in the short term. Second, making it easy to identify land owners and transfer land could also significantly reduce transaction costs associated with credit access.

Transforming the Rural Nonfarm Economy

Transforming the Rural Nonfarm Economy
Author: Steven Haggblade
Publisher: Intl Food Policy Res Inst
Total Pages: 514
Release: 2007-11-16
Genre: Business & Economics
ISBN: 0801886643

Contrary to conventional wisdom that equates rural economies with agriculture, rural residents in developing countries often rely heavily on activities other than farming for their income. Indeed, nonfarm work accounts for between one-third and one-half of rural incomes in the developing world. In recent years, accelerating globalization, increasing competition from large businesses, expanding urban markets for rural goods and services, and greater availability of information and communication technology have combined to expose rural nonfarm businesses to new opportunities as well as new risks. By examining these rapid changes in the rural nonfarm economy, international experts explore how the rural nonfarm economy can contribute to overall economic growth in developing countries and how the poor can participate in this rapidly evolving segment of the economy. The authors review an array of recent studies of the rural nonfarm economy in order to summarize existing empirical evidence, explore policy implications, and identify future research priorities. They examine the varied scale, structure, and composition of the rural nonfarm economy, as well as its relationship with agricultural and urban enterprises. And they address key questions about the role of public intervention in the rural nonfarm economy and how the rural poor can participate in and navigate the rapid transition underway in rural areas. The contributors offer new insights to specialists in rural development and to others interested in overall economic development.

Trade Costs, Export Development, and Poverty in Rwanda

Trade Costs, Export Development, and Poverty in Rwanda
Author: Ndiame Diop
Publisher: World Bank Publications
Total Pages: 26
Release: 2005
Genre: Economia rural
ISBN:

For Rwanda, one of the poorest countries in the world, trade offers the most effective route for substantial poverty reduction. But the poor in Rwanda, most of whom are subsistence farmers in rural areas, are currently disconnected from markets and commercial activities by extremely high transport costs and by severe constraints on their ability to shift out of subsistence farming. The constraints include lack of access to credit and lack of access to information on the skills and techniques required to produce commercial crops. The paper is based on information from the household survey and a recent diagnostic study of constraints to trade in Rwanda. It provides a number of indicative simulations that show the potential for substantial reductions in poverty from initiatives that reduce trade costs, enhance the quality of exportable goods, and facilitate movement out of subsistence into commercial activities.

Farming Systems and Poverty

Farming Systems and Poverty
Author: John A. Dixon
Publisher: Food & Agriculture Org.
Total Pages: 424
Release: 2001
Genre: Business & Economics
ISBN: 9789251046272

A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.

Impact of Malawi’s Farm Income Diversification Programme on household welfare: Empirical evidence from eleven districts

Impact of Malawi’s Farm Income Diversification Programme on household welfare: Empirical evidence from eleven districts
Author: Ng’ong’ola, Davies H.
Publisher: Intl Food Policy Res Inst
Total Pages: 23
Release: 2017-09-01
Genre: Political Science
ISBN:

This study used cross sectional data from the government of Malawi’s Farm Income Diversification Programme (FIDP) to examine the impact of FIDP on household welfare. Total annual household income, food security, and the wealth status of households were used as measures of household welfare. A propensity score matching procedure was used to make statistically valid comparisons between the welfare of households which participated and did not participate in FIDP. The results show that households which participated in FIDP had higher incomes and their food security status improved more than among similar households which did not participate in the program. The results further reveal that FIDP improved the wealth of participating households compared to their counterparts who did not participate. Those FIDP participating households engaged in livestock production, in particular, experienced considerable growth of income, which suggests that livestock enterprises coupled with income from crops could be an important pathway for improving the wellbeing of households in Malawi.

The World Bank Research Program, 2005-2007

The World Bank Research Program, 2005-2007
Author:
Publisher: World Bank Publications
Total Pages: 286
Release: 2008
Genre: Business & Economics
ISBN: 0821374060

This pocket-sized reference on key environmental data for over 200 countries includes key indicators on agriculture, forestry, biodiversity, energy, emission and pollution, and water and sanitation. The volume helps establish a sound base of information to help set priorities and measure progress toward environmental sustainability goals.

reading tealeaves on the potential impact of the privatization of tea estates in rwanda

reading tealeaves on the potential impact of the privatization of tea estates in rwanda
Author: Vijdan Korman
Publisher: World Bank Publications
Total Pages: 25
Release: 2008
Genre: Agricultural products
ISBN:

Abstract: The Poverty Reduction Strategy of the Government of Rwanda seeks to unlock the growth and poverty reduction potential of the tea sector through the privatization of tea estates. This paper uses the logic of causal inference and data from the 2004 Quantitative Baseline Survey of the tea sector to assess the potential impact of the privatization program. This entails a normalized comparison of productivity outcomes to account for household heterogeneity in terms of observable and non-observable determinants of these outcomes. The paper also compares living standards between tea and non-tea households. Three main findings emerge from the analysis. Productivity outcomes are generally better in the private sector than in the public sector. Male-headed households outperform female-headed households along all dimensions considered here. And tea households tend to be better off than non-tea households.