Role of Nonfarm Activities in the Rural Economy

摘要

The role of rural nonfarm activities in developing countries and their relationship with agriculture are examined in this study. The study shows that nonfarm activities not only make a major welfare contribution with respect to equity and income distribution, by productively absorbing a large quantity of rural labor and providing a major source of household income, but that many add more to the GNP than the substitute goods and services supplied by technically advanced capital-intensive producers. The nonfarm sector promotes increased agricultural productivity through design adaptation within the rural small-scale farm equipment industry, and stimulates agricultural growth through reduced marketing costs and through substantial income effects on food expenditures.