Rural Industries and Rural Linkages in SubSaharan Africa: A Survey
Rural industrialisation has many advantages compared with large-scale urban industrialisation. It spreads employment and income opportunities more widely and because it is generally more labour intensive it creates more jobs for any given level of investment. As a result it tends to be more effective in combating poverty, and to be associated with more egalitarian income distribution. Moreover, not only does rural industrialisation lead to a better regional balance, but the geographical spread of industrialisation can have positive effects on agricultural productivity by improving the agricultural terms of trade in the areas surrounding small towns, and changing farmers’ attitudes. Through mutual linkages between agriculture (A) and non-agriculture (N), a virtuous circle of development may emerge, with greater agricultural output leading to more non-agricultural activity and greater non-agricultural output in turn acting as a stimulus to agriculture.
KeywordsRural Town Forward Linkage Agricultural Income Rural Industry Production Linkage
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