@article{Haggblade:183345,
      recid = {183345},
      author = {Haggblade, Steven and Liedholm, Carl},
      title = {Agriculture, Rural Labour Markets and the Evolution of the  Rural Non-farm Economy},
      address = {1992},
      number = {996-2016-77884},
      pages = {17},
      year = {1992},
      abstract = {The size of the rural non-farm economy depends primarily  on agricultural
demand. As farm income grows, it generates  spillover growth in the rural nonfarm
economy, since rising  farm income increases rural purchases of nonfarm
goods and  services. The well-known debates on agricultural  growth
linkages revolve around how powerful these demand  linkages are (Mellor,
1975; Johnston and Kilby, 1975; Bell  and Hazell, 1980). Yet agriculture
affects the supply of  non-farm goods and services as well. Operating  primarily
through the labour market, these supply-side  linkages have been largely
overlooked in the growth linkage  discussions. This is unfortunate, because a
focus on the  labour market alters conclusions about the magnitude of  farmnon-
farm linkages. It also highlights how agriculture  affects not only the size
but also the composition of the  rural non-farm economy.
This paper explores the  relationship between agricultural growth, the rural
labour  market, and the size and composition of rural non-farm  activity. It
begins by reviewing what is known about the  rural non-farm economy in
developing countries, followed by  a review of empirical evidence on the
relationship between  agriculture, labour markets and the transformation of  the
rural non-farm economy. The paper then introduces a  simple price-endogenous
model that projects the non-farm  employment, wage and income effects
of alternative forms of  agricultural growth. The model highlights the labour
market  interactions that contribute importantly to a shifting  composition of
rural non-farm activity.},
      url = {http://ageconsearch.umn.edu/record/183345},
      doi = {https://doi.org/10.22004/ag.econ.183345},
}