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Linkages and rural non-farm employment creation: Changing challenges and policies in Indonesia








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    Linkages between Farm and Non-Farm Sectors at the Household Level in Rural Ghana
    A consistent stochastic distance function approach
    2008
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    In the light of an expanding rural non-farm (RNF) sector in developing rural economies, this paper explores the effects of this expansion within the household. Using rural Ghana as a case study this paper explores if the RNF economy allows for economies of diversification within farms; how input demands, agricultural-specific and shared, are transformed by the expansion of this sector; and if this expansion has measurable effects in overall household production efficiency. We first explore the c haracteristic of the intra-household linkages (technological and welfare driven) between the agricultural and RNF sectors both assuming perfectly working input and output markets, and assuming market failures, in particular missing labor and credit markets. We then try to measure the identified linkages by estimating a household level input distance function. This function is estimated consistently without making log-transformations as has been previously done in the literature. Our empirical an alysis suggests that there are high levels of inefficiency in Ghanaian farms. Also, there are cost-complementarities between the RNF sector and the agricultural sector, particularly with food crops in which the poorest tend to specialize. The expansion of the RNF sector increases demand for most inputs including agricultural land. Finally, we show that smaller farms tend to be more efficient, and that RNF output is helping the farm household to become more efficient, but the latter result is not robust.
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    Strengthening farm-agribusiness linkages in Africa
    Summary results of five country studies in Ghana, Nigeria, Kenya, Uganda and South Africa
    2004
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    Over the past decade, Africa and other developing regions have been in the midst of tremendous changes. Market liberalisation and governmental decentralisation policies have interfaced with globalisation and urbanisation trends to dramatically transform social, political, economic and cultural lives. Agriculture can no longer remain behind-serving only to meet subsistence food needs. Agriculture has to become a dynamic and integral part of the market economy. If African agriculture is by-passed by the economic transformation going on world wide, then large numbers of Africans and perhaps all of Africa will remain poor and food insecure. The fundamental purpose behind the FAO initiative to strengthening farm-agribusiness linkages is to help transform the agricultural sector in order to accelerate productivity growth, increase income and employment generation, improve food security, and increase competitiveness in regional and international trade. In 2001 and 2002 five country case studies on farm-agribusiness linkages were undertaken in Ghana, Nigeria, Kenya, Uganda and South Africa. The main purpose of the studies was to get an insight into current farm-agribusiness linking arrangements. This included identifying and analysing successful linkages highlighting different methods and practices as well as exploring key factors that have led to successful partnerships. The country studies also contained a brief agribusiness sector overview. The work in Africa began with preparation of five case studies which are presented as summary results as well as individually. FAO work on farm-agribusiness linkages emerged from a broader cross-regional study on farm-agribusiness linkages launched in 2000. The first stage was a series of country studies and a regional consultation in Asia. During 2001 and 2002, case studies and a regional workshop on agribusiness linkages were carried out in Latin America. This was followed by a workshop on strategies for improving neg otiation and compliance capabilities, held in November 2002 in Peru. An expert consultation on strengthening farm-agribusiness linkages in Africa was held in March 2003 in Nairobi, Kenya.
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    Promoting farm/non-farm linkages for rural development
    Case studies from Africa and Latin America
    2002
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    The present publication contains six in-depth case studies exploring the dynamic linkages between farm and non-farm activities in Africa and Latin America. These studies (i) characterize spin-off activities in each study area and evaluate their importance to rural employment, incomes and growth; (ii) descrive, compare, analyze and synthesize experiences - successful and unsuccessful - of growth and promotion of linkages in high potential areas; and (iii) suggest policy and programme options for promoting growth and employment opportunities in the off-farm sector in rural economies. The case studies cover countries as diverse as Ethiopia, Ghana, Kenya, Mexico and Peru, and focus particularly on the institutional, organizational and technological aspects of spin-off activities. An overview of the case studies and their relation ot recent literature is also provided.

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