Ramifications of Households Non-farm Income on Agricultural Productivity: Evidence from Rural Area of Pakistan

Authors : Mdsalamun RASHİDİN, Sara JAVED, Bin LİU

Pages : 108-123

Doi:10.33462/jotaf.518975

View : 21 | Download : 15

Publication Date : 2020-05-27

Article Type : Research Paper

Abstract :In Pakistan, agriculture sector currently contribu tes up to 28 percent to in GDP. Due to the development of modern science and technology , rural household source of income is altering. Lots of research suggested that non-farm income is the main source of income for rural area. This study investigates the effects of non-farm income on agriculture productivity in Pakistan. The current research accumulated data from Pakistan Social and Living Standards Measurement Survey insert ignore into journalissuearticles values(PSLM); 2014-15. Pakistan Federal Bauru of Statistics has developed its own sampling frame for rural and urban areas. Researcher used the Heckman’s two - step procedure to tackle the problem of endogeneity and selection bias. The first phase of probit regression coefficient indicates that the availability of bank s , motorable roads, forest, telecommunication substructure, m ontane grasslands and shrublands zone are substantial to clarify the non-farm income. O n the other hand, the second stage of OLS regression exhibited a significant negative association between non-farm income and per-capita farm income.
Keywords : Agricultural Productivity, Non farm income, Endogeneity