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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Detalles Bibliográficos
Publicado en:Journal of Development Studies Vol. 54; no. 5; pp. 833 - 856
Autores principales: Diao, Xinshen, Magalhaes, Eduardo, Mcmillan, Margaret
Formato: Artículo
Publicado: Taylor & Francis Ltd May2018
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario: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.