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Determinants of Inter-District Variations in Rural Non-Farm Employment in Andhra Pradesh: A District Level Data Analysis

Prasada Mecharla

No 13, PRUS Working Papers from Poverty Research Unit at Sussex, University of Sussex

Abstract: This paper is attempted to examine the nature of rural non-farm employment (RNFE) in Andhra Pradesh (AP) using the district level data gathered from the secondary sources. It seeks to identify the determinants of inter-district variations in the shares and growth of RNFE across a cross-section of 7 categories of rural non-farm employment for 22 districts in AP. The basic objective is to test the hypothesis of ‘distress diversification’ against ‘agricultural growth linkages’ in order to explain the propensity of rural people to be involved in the RNFE. Econometric models have been used to explain the district level variation in the RNFE by pooling the data for 1981 and 1991 for various sub-sectors in AP. The analysis reveals that variations in irrigation, farm size, literacy, urbanisation, commercialisation, infrastructure and poverty are significant determinants of RNFE.

Pages: 65 pages
Date: 2002-09
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