| dc.description.abstract | A considerable flow of resources takes place at the household
level from urban to rural and from non-agricultural to
agricultural activities by way of urban-rural remittances,
non farm income, and return migration. The potential of this
flow of resources in spurring rural economic development has
been accorded little significance in development theory and
planning.
This dissertation uses data from Kutus area, Kenya to show
how rural-urban exchange relations drive rural development.
First, it investigates the relationship between farm income,
the propensity to earn income from sources other than the
farm, and agricultural production and productivity. Next, it
examines where rural households earn their incomes, where they
spend and invest it, and the consequences for economic
development in the Kutus area.
The analysis demonstrates that the use of nonfarm income
enables rural households in Kutus area to raise agricultural
output, productivity, and farm income. The study also reveals
that rural household economic behavior is highly oriented
towards spending and re-investing in the local area spurring
the growth of non farm activities in Kutus town and lower
market centers.
Growth of smallholder production and rural economy has been
the main engine of Kenya's sustained economic growth. There
is still considerable scope for further development of
agriculture. The study emphasizes establishment of rural
development policies that encompass both agriculture and
non farm activities, rural as well as urban areas, and the need
to re-orient institutional infrastructure for rural ,.
development to make it more responsive to smallholder
production. | en |
