Can Agricultural Productivity Growth Shape the Development of the Non-Farm Rural Economy? Geographically Localized Evidence from Zambia
DOWNLOADDecember 19, 2019 - Jason Snyder, Thomas Jayne, Jordan Chamberlin, Paul Samboko, Nicole Mason
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EmailJason 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.
