Abstract:
In the search for rural transformation, this paper analyses the effect of
agriculture on rural nonfarm entrepreneurship (NFE) highlighting the
role of land rights and assesses the impact of rural NFE on households’
livelihood focusing on rural Burkina Faso. To achieve these objectives,
the study uses two techniques: (i) propensity score matching technique
to investigate the nonfarm entrepreneurship impact on farm
households’ income; (ii) logistic regression to assess the role of
agriculture in the development of nonfarm enterprises. Empirical
estimates are based on the Living Standards Measurement StudyIntegrated Surveys on Agriculture (LSMS-ISA) database of the World
Bank. From the results we conclude that rural NFE is pivotal for rural
transformation in Burkina Faso given that farm households that engage
into NFE enjoy significantly higher per capita income and overall
household income. The results allow us in addition to establish that on
average, a farmer whose land rights are perfectly secured is more
willing to engage into non-farm entrepreneurship activities. Additional
determinants of individual engagement into NFE are shocks, livestock
size, age of household head, active female household members and land
size. Farming experience has no effect on individual engagement into
NFE. These findings call for a redefinition of the agricultural policy and
programs of the country to explicitly include rural nonfarm
entrepreneurship development strategies component. Such component
could target pragmatic land lights policy and the enhancement of the
capabilities of farm households to be entrepreneurial.