Household Income Diversification into Rural Nonfarm Activities

TRANSFORMING THE RURAL NONFARM ECONOMY, 2006

Posted: 24 May 2011

See all articles by Thomas Reardon

Thomas Reardon

Michigan State University

Julio Berdegué

International Network for Research on Farming Systems (RIMISP)

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Kostas Stamoulis

United Nations - Food and Agriculture Organization (FAO)

Date Written: 2006

Abstract

The traditional vision of rural economies as purely agricultural is clearly obsolete. Farm households across the developing world earn an increasing share of their income from nonfarm sources (see Table 4.1). And the specialized nonfarm households that emerge often diversify into multiple business activities. Decisions affecting non-farm enterprise creation, closure and growth are, thus, commonly taken within the confines of a multi-activity rural household. Thus, the nonfarm enterprise dynamics, discussed in Chapter 5, fit into a household decision-making environment that helps to shape labor and capital allocations across activities, as well as outcomes. Consequently, a fuller understanding of nonfarm enterprise dynamics requires an assessment of the household decision-making environment within which these decisions are frequently made.

Suggested Citation

Reardon, Thomas and Berdegue, Julio A. and Barrett, Christopher B. and Stamoulis, Kostas, Household Income Diversification into Rural Nonfarm Activities (2006). TRANSFORMING THE RURAL NONFARM ECONOMY, 2006 , Available at SSRN: https://ssrn.com/abstract=1846821

Thomas Reardon

Michigan State University ( email )

Julio A. Berdegue

International Network for Research on Farming Systems (RIMISP) ( email )

Santiago
Chile

Christopher B. Barrett (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Kostas Stamoulis

United Nations - Food and Agriculture Organization (FAO) ( email )

Viale delle Terme di Caracalla
Rome, Lazio 00100
ITALY

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