Transformation of the Rural Nonfarm Economy During Rapid Urbanization and Structural Transformation in Developing Regions

Peter Hazell (), Steven Haggblade and Thomas Reardon
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Peter Hazell: International Food Policy Research Institute (IFPRI), Washington, DC, USA
Steven Haggblade: Department of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, Michigan, USA

Annual Review of Resource Economics, 2024, vol. 16, issue 1, 277-299

Abstract: This article reviews the past 25 years of empirical research on the rural nonfarm economy (RNFE) in developing countries; that literature has evolved in ways that track and mirror the rural transformation itself. Since 2000, rapid urbanization, structural transformation, and a sharp series of economic, climate, and disease shocks have influenced trajectories in the RNFE. It has grown to become, on average, the predominant source of income for rural households in developing countries. Both segments of the RNFE—activities linked to agricultural value chains as well as those unrelated to the agricultural sector—have grown. Understanding how each component of the RNFE influences rural incomes, employment, resilience, women, youth, and farming and natural resource management practices is, therefore, more important than ever.

Keywords: agricultural value chains; rural nonfarm economy; structural transformation; urbanization; rural employment; rural transformation (search for similar items in EconPapers)
JEL-codes: O17 O18 Q1 Q13 R11 R58 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1146/annurev-resource-101623-105713

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