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Spatial specialization and farm-nonfarm linkages
 
Author:Deichmann, Uwe; Shilpi, Forhad; Vakis, Renos; Collection Title:Policy Research working paper ; no. WPS 4611
Country:Bangladesh; Date Stored:2008/04/28
Document Date:2008/04/01Document Type:Policy Research Working Paper
Language:EnglishRegion:South Asia
Report Number:WPS4611SubTopics:Transport Economics Policy & Planning; Rural Poverty Reduction; Crops and Crop Management Systems; Labor Policies
Volume No:1 of 1  

Summary: Using individual level employment data from Bangladesh, this paper presents empirical evidence on the relative importance of farm and urban linkages for rural nonfarm employment. The econometric results indicate that high return wage work and self-employment in nonfarm activities cluster around major urban centers. The negative effects of isolation on high return wage work and on self-employment are magnified in locations with higher agricultural potential. The low return nonfarm activities respond primarily to local demand displaying no significant spatial variation. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for nonfarm development in Bangladesh.

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