This paper explores determinants of participation, intensity and the
magnitude of the rural nonfarm economy (RNFE) in Tajikistan. Conducting
analysis at the district level, in addition to traditional individual
and household levels, helps to test the impact of institutional
determinants of the RNFE invariant at the micro level. We have found
that rural residents in Tajikistan are mostly pushed into nonfarm
activities in areas with scarce land resources of poor quality.
Moreover, market imperfections in the agricultural sector are also found
to induce participation and intensity of the rural nonfarm activities.
While nonfarm activities are found to be mostly driven by "push"
factors, poor education and the access to infrastructure are found to be
important barriers constraining the poor from participation in nonfarm
Keywords: nonfarm economy, determinants, rural, Tajikistan
JEL: J21, J22, J24