Regional Growth Linkages from Agriculture and Resource Flows in Non-Farm Economy

In this paper, the advocacy emanating from international research on agricultural growth linkages is subjected to empirical validation in an agricultural district in South India, In part one, the characteristics of non-farm activity are analysed in terms of their material relations with agricultural production. A varied data set covering flows of commodities, money and finance and labour is marshalled to show that industry is not for the most part rurally located, small-scale, labour intensive and based on local raw materials and local final markets. In part two, the implementation of policies designed to favour rural non-farm activity is found to divert resources away from priority targeted sector Our findings reveal the increasing importance of the national market and of regional integration and the likelihood of substantial flows of agricultural surpluses to the commercial, industrial and metropolitan economic sectors, a process supported by public sector mobilisation and allocation of resources.