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The Rural Nonfarm Sector
Corral, Leonardo and Thomas Reardon. 2001. “Rural Nonfarm Incomes in Nicaragua.” World Development. 29(3): 427-42.
Summary: This paper uses data from the 1998 LSMS in Nicaragua to study the incidence and importance of rural non-farm employment and income for rural households. The data show that about 40% of rural income is from the non-farm sector and about 18% of households derive their income from a combination of farm and non-farm employment or activities. Higher household income is associated with a larger share of income coming from non-farm employment as well as less land owned. Three-fourths of non-farm rural income is from the services sector and much of the non-farm rural employment is concentrated geographically. Participation in rural non-farm employment is also largely by members of more wealthy households.
Region: Nicaragua.
Lanjouw, Peter. 2001. “Nonfarm Employment and Poverty in Rural El Salvador,” World Development. 29(3): 529-47.
Summary: This paper uses two surveys (a national household survey and a rural household survey) to analyze the effects of non-farm employment and income on poverty in rural El Salvador. The data show that in 1994, “36.4% of the economically active rural population was employed in the non-farm sector,” and women are much more involved than men. Educated individuals are more likely than non-educated individuals to be employed in the non-farm sector, while the shorter the distance to a paved road, the more likely a household member will work in the non-farm sector.
Region: El Salvador.
Reardon, Thomas, Julio Berdegué and Germán Escobar. 2001. “Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications.” World Development. 29(3): 395-409.
Summary: This paper reviews the results of a number of country-specific studies on rural non-farm income in Latin America. The general findings from these studies are that rural nonfarm employment and income are significant parts of rural household income. Education and access to infrastructure are important determinants of employment in the non-farm sector. The authors suggest that development strategies should focus on the development of the non-farm sector in rural areas, but not at the expense of agricultural development. In many areas, the non-farm sector is strongly linked to agriculture, suggesting that these linkages be developed more fully and taken advantage of so to increase income and reduce poverty.
Region: Latin America.
Ruben, Ruerd and Marrit Van Den Berg. 2001. “Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras.” World Development. 29(3): 549-60.
Summary: This study uses data from the 1993-1994 national income and expenditure survey to examine non-farm income in rural farm households. Only rural households who own or rent land (farm households) are studied and patterns are analyzed by geographic area and income strata. The results show that between 16 and 25% of farm households’ income comes from non-farm or self employment. Non-farm income is more important to middle and upper income rural farm households and educated individuals from large households are the main participants in rural non-farm employment. Non-farm income also increases food security and the amount of inputs used in farm activities.
Region: Honduras.
Segura, Gustavo and Christ Inman. 1997. “Turismo en Guatemala: El Reto de la Competitividad.” Centro Latinoamericano para la Competitividad y el Desarrollo Sostenible, INCAE. January. (S)
Summary: This is a detailed review and description of the tourism industry in Guatemala as of 1995. It describes the many attractions that various regions of the country contain and describes in detail each sub-sector of the industry. Tourist revenue in Guatemala is compared to that earned by other Central American countries and other parts of the world. The authors also delineate the limitations to growth in the industry that affect its competitiveness.
Region: Guatemala.
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