Is off‐farm income reforming the farm? Evidence from Mexico

Agricultural Economics - Tập 40 Số 2 - Trang 125-138 - 2009
Lisa Pfeiffer1, Alejandro López‐Feldman2, J. Edward Taylor1
1Department of Agricultural and Resource Economics, University of California, Davis, CA 95616, USA
2Escuela de Economía, Universidad de Guanuajuato, UCEA‐Campus Marfil, Fracc. I, El Establo, Guanajuato GTO 36250 México

Tóm tắt

AbstractDoes access to off‐farm income complement or compete with agricultural production? This article explores the effect of off‐farm income on agricultural production activities, using data from the 2003 Mexico National Rural Household Survey. We first discuss the theoretical conditions under which access to off‐farm income may influence production in an agricultural household model. Instrumental‐variable (IV) estimation methods are then used to test whether agricultural production activities, technologies, and input use differ between households with and without access to off‐farm income. We find that off‐farm income has a negative effect on agricultural output and the use of family labor on the farm, but a positive impact on the demand for purchased inputs. There is also a slight efficiency gain in households with access to off‐farm income. Findings offer insights into how household production evolves as rural households increasingly engage in off‐farm income activities.

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Agricultural Economics

Tập 40 Số 2

125-138

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