Spatial Specialization and Farm-Nonfarm Linkages

36 Pages Posted: 20 Apr 2016

See all articles by Uwe Deichmann

Uwe Deichmann

World Bank - Development Research Group (DECRG)

Forhad Shilpi

World Bank - Development Research Group (DECRG)

Renos Vakis

The World Bank

Date Written: April 1, 2008

Abstract

Using individual level employment data from Bangladesh, this paper presents empirical evidence on the relative importance of farm and urban linkages for rural nonfarm employment. The econometric results indicate that high return wage work and self-employment in nonfarm activities cluster around major urban centers. The negative effects of isolation on high return wage work and on self-employment are magnified in locations with higher agricultural potential. The low return nonfarm activities respond primarily to local demand displaying no significant spatial variation. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for nonfarm development in Bangladesh.

Keywords: Transport Economics Policy & Planning, Rural Poverty Reduction, Crops & Crop Management Systems, Labor Policies

Suggested Citation

Deichmann, Uwe and Shilpi, Forhad and Vakis, Renos, Spatial Specialization and Farm-Nonfarm Linkages (April 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1149114

Uwe Deichmann (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Forhad Shilpi

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-7476 (Phone)
202-522-1151 (Fax)

Renos Vakis

The World Bank ( email )

1818 H Street NW
Washington, DC 20043
United States

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