Can Agricultural Productivity Growth Shape the Development of the Non-Farm Rural Economy? Geographically Localized Evidence from Zambia
DOWNLOAD FILEDecember 19, 2019 - Author: Jason Snyder, Thomas Jayne, Jordan Chamberlin, Paul Samboko, 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 109, 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.
