Spatial spillovers and households’ involvement in the non-farm sector: evidence from rural Rwanda

Pia Nilsson

Regional Studies, 2019, vol. 53, issue 5, 731-740

Abstract: This paper tests for external effects of local economic activity on non-farm income using survey data from Rwanda. The empirical analysis uses a random sample of 8071 households and a multilevel model to mitigate correlations between individual outcomes and geographical variables. Findings show a positive association between a higher initial local diversity of economic activity and non-farm earnings. Results also point to the importance of access to markets and services indicating that an important part of a household’s capacity to earn non-farm income is associated with factors that are external to the household.

Date: 2019
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DOI: 10.1080/00343404.2018.1482415

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