Spatial Specialization and Farm-Nonfarm Linkages

Deichmann, Uwe ; Shilpi, Forhad ; Vakis, Renos

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Using individual level employment data from Bangladesh, this paper presents empirical evidence on the relative importance of farm and urban linkages for rural nonfarm employment. The econometric results indicate that high return wage work and self-employment in nonfarm activities cluster around major urban centers. The negative effects of isolation on high return wage work and on self-employment are magnified in locations with higher agricultural potential. The low return nonfarm activities respond primarily to local demand displaying no significant spatial variation. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for nonfarm development in Bangladesh.

Document type: Working paper
Place of Publication: Washington, D.C.
Date: 2008
Version: Secondary publication
Date Deposited: 27 May 2015
Number of Pages: 36
Faculties / Institutes: Miscellaneous > Individual person
DDC-classification: Economics
Controlled Keywords: Bangladesch, Beschäftigung, Räumliche Disparität
Uncontrolled Keywords: Bangladesch, Beschäftigung, Landwirtschaft, Räumliche Disparität / Bangladesh, Employment, Agriculture, Spatial Disparity
Subject (classification): Economics
Countries/Regions: Bangladesh
Additional Information: © World Bank. License: CC BY 3.0 Unported