The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia

John Gibson and Susan Olivia

World Development, 2010, vol. 38, issue 5, 717-726

Abstract: Summary There is growing interest in the rural non-farm sector in developing countries as a contributor to economic growth, employment generation, livelihood diversification, and poverty reduction. Access to infrastructure is identified in some studies as a factor that affects non-farm rural employment and income but less attention has been paid to the constraints imposed by poor quality infrastructure. In this paper, we use data from 4,000 households in rural Indonesia to show that the quality of two key types of infrastructure--roads and electricity--affects both employment in and income from non-farm enterprises. It appears that there would be gains from development strategies that improve both the access to and the quality of rural infrastructure.

Keywords: infrastructure; non-farm; employment; Indonesia (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (55)

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Working Paper: The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:38:y:2010:i:5:p:717-726

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