Abstract
Impact of rural infrastructure on economic development is indirect and complex. The present study jointly determines the impact of rural infrastructure on the decision to choose between farm and non-farm enterprises vis-à-vis income by Bangladeshi rural households (4,195 households from 139 villages) using a bivariate Tobit model. The model diagnostic reveals that the decision to choose enterprises is significantly correlated, justifying use of a bivariate approach. Rural infrastructure has a significant but opposite impact on enterprise choices vis-àvis income. Other major determinants with varying level of influences are farm size, livestock resources, education, farming experience and household assets. However, female-headed households are doubly disadvantaged as they have failed to participate in both enterprises and consequently earned significantly less. Policy implications include investment in rural infrastructure, irrigation, rural electrification, education, livestock resources, tenurial reforms, as well as targeted approach to promote welfare of the female-headed households, e.g., creation of a hired labor market for females.
DOI
10.1353/jda.2014.0006
Publication Date
2014-01-02
Publication Title
Journal of Developing Areas
Volume
48
Issue
1
Publisher
Tennessee State University College of Business
ISSN
0022-037X
Embargo Period
2024-11-25
First Page
275
Last Page
290
Recommended Citation
Rahman, S. (2014) 'Impact of rural infrastructure on farm and non-farm enterprise choice and income in Bangladesh', Journal of Developing Areas, 48(1), pp. 275-290. Tennessee State University College of Business: Available at: https://doi.org/10.1353/jda.2014.0006
