Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania

Tanzania’s recent growth boom has been accompanied by a threefold increase in the share of the rural labour force working in nonfarm employment. Although households with nonfarm enterprises are less likely to be poor, a substantial fraction of these households fall below the poverty line. Heterogene...

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Main Authors: Diao, Xinshen, Magalhaes, Eduardo, McMillan, Margaret S.
Format: Journal Article
Language:Inglés
Published: Routledge 2018
Subjects:
Online Access:https://hdl.handle.net/10568/146033
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author Diao, Xinshen
Magalhaes, Eduardo
McMillan, Margaret S.
author_browse Diao, Xinshen
Magalhaes, Eduardo
McMillan, Margaret S.
author_facet Diao, Xinshen
Magalhaes, Eduardo
McMillan, Margaret S.
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description Tanzania’s recent growth boom has been accompanied by a threefold increase in the share of the rural labour force working in nonfarm employment. Although households with nonfarm enterprises are less likely to be poor, a substantial fraction of these households fall below the poverty line. Heterogeneity in the labour productivity of rural nonfarm businesses calls for a two-pronged strategy for rural transformation. Relatively unproductive enterprises may be part of a poverty reduction strategy but should not be expected to contribute to employment and labour productivity growth. Failure to account for this heterogeneity is likely to lead to disappointing outcomes.
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spelling CGSpace1460332024-10-25T07:55:31Z Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania Diao, Xinshen Magalhaes, Eduardo McMillan, Margaret S. rural population economic development surveys nonfarm income labour productivity productivity small and medium enterprises rural development off-farm employment probit analysis Tanzania’s recent growth boom has been accompanied by a threefold increase in the share of the rural labour force working in nonfarm employment. Although households with nonfarm enterprises are less likely to be poor, a substantial fraction of these households fall below the poverty line. Heterogeneity in the labour productivity of rural nonfarm businesses calls for a two-pronged strategy for rural transformation. Relatively unproductive enterprises may be part of a poverty reduction strategy but should not be expected to contribute to employment and labour productivity growth. Failure to account for this heterogeneity is likely to lead to disappointing outcomes. 2018-03-01 2024-06-21T09:05:38Z 2024-06-21T09:05:38Z Journal Article https://hdl.handle.net/10568/146033 en Open Access Routledge Diao, Xinshen; Magalhaes, Eduardo; and McMillan, Margaret S. 2018. Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania. Journal of Development Studies 54(5): 833-855. https://doi.org/10.1080/00220388.2018.1430766
spellingShingle rural population
economic development
surveys
nonfarm income
labour productivity
productivity
small and medium enterprises
rural development
off-farm employment
probit analysis
Diao, Xinshen
Magalhaes, Eduardo
McMillan, Margaret S.
Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania
title Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania
title_full Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania
title_fullStr Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania
title_full_unstemmed Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania
title_short Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania
title_sort understanding the role of rural non farm enterprises in africa s economic transformation evidence from tanzania
topic rural population
economic development
surveys
nonfarm income
labour productivity
productivity
small and medium enterprises
rural development
off-farm employment
probit analysis
url https://hdl.handle.net/10568/146033
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