Rural Non-Farm Activities in Central Asia : A Regional Analysis of Magnitude, Structure, Evolution and Drivers in the Kyrgyz Republic

This paper provides an in-depth regional analysis of the rural nonfarm sector (RNFE) in Kyrgyzstan based on three household budget surveys for 2003, 2005 and 2006. The main finding is that the RNFE had predominantly “push” nature in spite of all reforms in the agricultural sector. Regression results demonstrate that the magnitude of private rural nonfarm employment was larger in districts with low agricultural potential measured by size of land per capita and land quality, indicating its “push” nature. Only in land-rich districts with extremely favourable agricultural conditions and low population pressure or in areas close to resorts, non-farm employment can be attributed to “pull” factors