Can Agricultural Productivity Growth Shape the Development of the Non-Farm Rural Economy? Geographically Localized Evidence from Zambia

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December 19, 2019 - Jason Snyder, Thomas Jayne<jayne@msu.edu>, Jordan Chamberlin<chamb244@msu.edu>, Paul Samboko<sambokop@msu.edu>, Nicole Mason

Jason Snyder, Thomas Jayne, Jordan Chamberlin, Paul Samboko, Nicole Mason, 2019. Can Agricultural Productivity Growth Shape the Development of the Non-Farm Rural Economy? Geographically Localized Evidence from Zambia, FSP Research Brief 104, East Lansing: Michigan State University.

Key Findings

  • There is very little micro-level empirical literature estimating farm to non-farm labor linkages from agricultural productivity growth in Africa. Our study helps to fill this gap in Zambia.
  • We find that a doubling of district level crop productivity is positively associated with a 14%- 17% increase in non-farm labor activity among rural farm households in Zambia.
  • This impact is even more pronounced for changes in small farm district productivity (<2 hectares), causing a 24%-31% increase non-farm labor activity among rural small farm households.
  • There is also some evidence, although it is less robust, that increases in productivity among relatively lower productivity farms (relative to each district), also increases non-farm labor activity.
  • Overall, these results align with the structural transformation hypothesis with regards to labor linkages, and can be used to help justify support for improvements in small-farm crop productivity.

 

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  • input use and market development,
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