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The Agricultural Input Productivity and Rural-Urban Migration in Myanmar (1965-2000)
- This study examines the relationship between agricultural input productivity and rural - urban migration by developing an econometric model and applying it to the case of Myanmar. Myanmar economy relies more on agricultural sector than other sectors till now. Moreover , over 70 %of the total populations live in rural areas where agriculture is the main source of employment and income. Growth in the agricultural sector is therefore one of the most effective ways of reducing poverty, since it can raise the income of farmers, narrow the rural-urban income gap, raise the earnings of landless laborers, and improve' access to food. Asides from these direct benefits, agriculture has important linkages with the rest of the economy , creates jobs - in other sectors and shrinks rural to urban migration . In Myanmar , rural-urban migration has been increasesing since 1986. In fa<;t rural- urban migration and agricultural performance are tied together because rural workers compare their income with what they could obtain if they migrate to the city. Rural-urban migration occurs where there is economic disparity between rural and urban areas.•Some economists, therefore, argue that boosting agricultural productivity and/or income can reduce the incidence of economic problem s partially posed by rural- urban migration . In this paper , an attempt is made, using recursive equation system and a Myanmar data set for period 1965 - 2000, to measure the indirect elasticity of rural - urban migration. The findings support the •hypothesis that rural-urban migration is a positive function of the ratio of urban per capita income to rural per capita income, agricultural inputs have a positive impact on agricultural output and agricultural inputs have a negative impact on rural-urban migration . Moreover , the result helps to set up possible policy aimed to reduce migration flow through increase per capita earning of rural people derived from .increase investment in agricultural inputs.
Thin Thin Oo
- Yangon University of Economics Research Journal