Key Constraints for Rural Non-Farm Activity in Tanzania: Combining Investment Climate and Household Surveys

Songqing Jin and Klaus Deininger

Journal of African Economies, 2009, vol. 18, issue 2, 319-361

Abstract: We use a survey of small rural enterprises from Tanzania to identify subjective as well as objective obstacles to expansion and productivity of the country's rural non-farm sector. Our results suggest that infrastructure constraints significantly reduce participation in the sector and investment and productivity by existing enterprises. Such constraints are particularly harmful for small enterprises, suggesting that policies to improve delivery of key public services can provide a basis for rural non-farm development, with possible knock-on effects on poverty reduction. Copyright 2009 The author 2008. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

Date: 2009
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