Farm production and off-farm employment in areas of rapid rural industrialization

Chong, H.S.; Osburn, D.D.; Price, E.C.

IAAE Occasional Paper, International Association of Agricultural Economists 4: 228-231

1987


Accession: 001834356

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Abstract
The interrelationship between off-farm employment and land use intensity among small farmers was examined. A survey of 3333 farm households and secondary data from the Korea Republic were used for the empirical analysis. A simultaneous equations model that contained both qualitative and continuous dependent variables was used to estimate a joint determination of off-farm employment and land use intensity. A strong negative interrelationship was found between off-farm employment and land use intensity. The major result shows that government policies that pursue separate goals of off-farm employment and increased land utilization can be counterproductive if implemented concurrently. Also, some potential policy measures that can mitigate those policy conflicts are increased resources devoted to farmers' education and farm mechanization.