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Citation Information

Type Journal Article - Journal of African Economies
Title Key constraints for rural non-farm activity in Tanzania: Combining investment climate and household surveys
Volume 18
Issue 2
Publication (Day/Month/Year) 2009
Page numbers 319-361
URL http://jae.oxfordjournals.org/content/18/2/319.abstract
We use a survey of small rural enterprises from Tanzania to identify subjective as well as objective obstacles to expansion and productivity of the country's rural non-farm sector. Our results suggest that infrastructure constraints significantly reduce participation in the sector and investment and productivity by existing enterprises. Such constraints are particularly harmful for small enterprises, suggesting that policies to improve delivery of key public services can provide a basis for rural non-farm development, with possible knock-on effects on poverty reduction.

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