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Indian Institute of Technology Madras (2021)

Determinants of Rural Non farm Sector employment and its impact on farm production A Study in Semi Arid Tropics SAT and Eastern regions of India

Anviksha Drall

Titre : Determinants of Rural Non farm Sector employment and its impact on farm production A Study in Semi Arid Tropics SAT and Eastern regions of India

Auteur : Anviksha Drall

Université de soutenance : Indian Institute of Technology Madras

Grade : Doctor of Philosophy (PhD) 2021

Résumé partiel
The farm sector has always been considered as the major source of income for rural households and the backbone of Indian rural economy. However, of late, diversification into the rural non-farm sector (RNFS) has been observed due to uncertain climatic conditions, price fluctuations, land fragmentation etc. In this regard, this thesis examines the factors driving diversification into RNFS and its resulting impact on farm sector production in semi-arid tropics (SAT) and eastern regions of India. The thesis adds to the literature by developing appropriate theoretical models and conducting robust econometric analysis for a better understanding of the issue of RNFS diversification and its impact. The thesis utilizes micro-level data from the Village Dynamics in South Asia (VDSA) project, implemented by International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in collaboration with Bill and Melinda Gates Foundation (BMGF).

The first objective (Chapter 2) examines the determinants of RNFS diversification, focussing on several entry barriers like access to credit, education and social capital. This chapter contributes to the theoretical literature by embodying entry barriers and coping mechanism to farm output risk to the existing theoretical models. Empirically, the chapter deploys a fractional response model (Papke and Wooldridge,1996) to account for intensity of RNFS income and complements it with Heckman Selection Model (Maddala 1986) to overcome sample selection bias, if any. The empirical findings discern that inaccessibility to credit and social capital, and lack of education are the major entry barriers which hinder RNFS diversification. The second objective (Chapter 3) explores the factors determining diversification into various sub-categories of RNFS. The chapter makes a novel contribution by controlling for sample selection bias as well as the intensity of income from RNFS sub-categories. The empirical outcomes of multinomial logit (McFadden, 1974) and fractional multinomial logit model (Sivakumar and Bhat, 2002) reveal heterogeneity amongst entry barriers across various modes of RNFS diversification. The third objective (Chapter 4) investigates the effect of RNFS income on farm productivity via assessing how RNFS income affects farm input usage. T

Mots clés : Rural non-farm sector, entry barriers, farm sector, productivity, efficiency, environment

Présentation et version intégrale (Shodhganga)

Page publiée le 24 janvier 2023