United Nations
Information Centre | Nepal
Investigating the Structure, Magnitude and Trends of Capital Formation in and for Agriculture: Country Case Study of Nepal
PDF File Size: 844 KB | Download   
Nepal with per capita income of US$ 400 is among the poorest countries. Two-thirds of the labour force engages in agriculture that contributes 32 percent in the gross domestic product (GDP). Nearly 31 percent of the population lives below the nationally defined absolute poverty line and a dollar a day population is still larger. Poverty, food insecurity and hunger remain endemic to the country particularly in rural areas. Persistent poverty and food insecurity are often associated with, and can largely be attributed to sluggish growth of agriculture hovering around two to three percent and low land and labour productivities. The key to reverse the situation lies in generate growth in agriculture sector increasing the land and labour productivities which needs an increase in investment in agriculture and formation of capital in and for agriculture. The growth in agriculture is the outcome of the combined use of factors of production. The factors of production are direct and indirect. Land, labor and capital are the main direct factors of production and management is the main indirect factor of production. The contributions of the direct factors of production in growth can be measured directly and separately. Intermediate inputs such as feed and fertilizers are also the direct factors of production. Any improvement in the direct factors of production is considered as capital formation. The technological know how is the indirect input that makes direct inputs effective and efficient (Solow 1956). Investment in human resource development increases efficiency of not only the labour but also that of the other factors of production like land and capital. Educated persons can develop and adopt new and innovative techniques for making the agriculture labor and capital efficient. It decreases the costs of production and also enhances quality of the production from the given factors. Total factor productivity (TFP), the measure of the role of technology in the production process, is the portion of output not explained by the amount of inputs used in the production process. Improvement of capital formation and the production capacity is more important for agriculture that has challenge to feed the increasing global population and reducing the mass poverty. The capital formation occurs in agriculture when savings are used for investment in agriculture production. Capital formation in agriculture is still more important is developing countries where capital base is very poor constraining the production capacity. It is widely recognized that per dollar invested in agriculture capitals yields more than the dollar invested to other sectors.
#Capital #Agriculture
Publisher:
PARTC, FAO ,   (2010 )
Type / Script:
Draft in English
Keywords:
CAPITAL FORMATION, AGRICULTURE, AGRICULTURAL DEVELOPMENT, FOOD SECURITY, CAPITAL, AGRICULTURAL PRODUCTION, AGRICULTURAL INVESTMENT, ECONOMIC DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL INNOVATIONS, AGRICULTURAL MECHANIZATION, CAPITAL INVESTMENT
Thematic Group:
 FAO : Food and Agriculture Organization
Thesaurus:
04.01.01  -  Agricultural Economics And Policy; Rural Sociology
Reference Link:
** This document has been:
824  times viewed
11  times downloaded.
Feeder: LUNI SHRESTHA , Editor: SANJIYA SHRESTHA , Auditor:

View Document History
Related Topics
Nepal Agricultural Policy and Strategies for Poverty Alleviation and Food Security
Implementation in Asia and the Pacific of the Brussels Program of Action for the Least Developed Countries for the Decade 2001-2010: progress made, obstacles encountered and the way forward Nepal
FAO Nepal Initial Earthquake Response: Rebuilding Resilent Agricultural Livelihoods ( June 2015)
Nepal and FAO : Building Food and Nutrition Security through Sustainable Agricultural Development
Nepal Earthquake Executive Brief 30 April 2015
Guidelines for Institutional Arrangements, Training, Irrigation and Agriculture Production Improvements Under On-Farm Water Management Programme
Agriculture Digital Linkage Study
Post-2015 And SDGs: Nourishing People, Nurturing The Planet (May 2015)
UNNATI : Access To Finance ( A2F ) Project
Key Findings From The Agricultural Livelihoods Impact Appraisal (June 2015)
Agricultural Policy and Strategies for Poverty Alleviation and Food Security
CHAD: Country Office Food Security Update (August 2009)
World Programme For The Census Of Agriculture 2020: VOLUME 1 Programme, Concepts And Definitions
60 Years 1951-2011: Nepal-FAO Cooperation for a World without Hunger
Crop Situation Update: A joint assessment of 2014/15 Winter Crops
FAO Nepal Newsletter Observance Of 36th World Food Day-2016
Market Update, Issue 1 (December 2006)
Support to Financial inclusion in Nepal - 2014 - 2018- Through the "Access to finance" (A2F)
Food and Agricultural Markets in Nepal
Agricultural Policy And Strategies For Poverty Alleviation And Food Security-NEPAL
Sub-National Estimates of Human Capital Indicators: Localizing Investments for the Demographic Dividend
Livestock Sector Brief - Nepal
Press Release of FAO Representation in Nepal (3 March, 2015)
Nepal and FAO: Building food and nutrition security through sustainable agricultural development
Building Food And Nutrition Security Through Sustainable Agricultural Development
Gender In Agriculture Sourcebook
Basic Agreement Between His majesty's Government of Nepal and The United Nations Capital Development Fund
Secretary-General Deeply Saddened by Tragic Deaths of Seven Members of United Nations Mission in Nepal, Three Crew Members, in Monday Hellicopter Crash
FAO Statistical Yearbook 2013- World Food and Agriculture
Executive Brief Nepal Earthquakes (April 2015)
Managing climate risks and adapting to climate change in the agriculture sector in Nepal
Climate Change and Agrobiodiversity in Nepal: Opportunities to include agrobiodiversity maintenance to support Nepal’s National Adaptation Programme of Action (NAPA)
Press Release Of FAO Representation In Nepal (2015)
Market Watch - 2 (May 2007)
President’s Report: Proposed Grants To The Republic Of Nepal For Adaptation For Smallholders In Hilly Areas Project (ASHA)
BOOSTING FOOD SECURITY THROUGH DEVELOPMENT OF CLIMATE-RESILIENT AGRICULTURE IN NEPAL
Integrating Agriculture In National Adaptation Plans
Food and Agricultural Markets in Nepal
World Employment Programme Research (Working Paper) Technology and Employment Programme - The Capital Goods Sector in Nepal: Present Position and Prospects
Nepal-FAO Cooperation For a World Without Hunger (October 2011)
Market Watch 19 - October 2009
Mainstreaming Ecosystem Services and Biodiversity into Agricultural Production and Management in East Africa
Nepal Update July 2016
Accelerating Progress Towards the Economic Empowerment of Rural Women
Slope Agriculture Land Technology (SALT) in the Mid-hills of Nepal
Asia and Pacific Commission on Agricultural Statistics - Nepal – Agriculture Census
Employment Expansion through Cottage Industries in Nepal: Potentials and Constraints
Validated Technologies For Rice-based Systems of the Churia and Middlle Hills-Nepal
The Agriculture Sectors in the Intended Nationally Determined Contributions: Analysis
Characterization of the Agricultural Drought Prone Areas on a Global Scale
Trends In Sustainable Development: Agriculture, Rural Development, Land, Desertification And Drought: (2008-2009)
Biosecurity Status of Food and Agriculture in Nepal
Report On Rapid Emergency Food Security Assessment (EFSA) Far And Mid West Hills And Mountains, Nepal
Nepal Earthquake Executive Brief 15 May 2015
Biosecurity Status of Food and Agriculture in Nepal
Lessons learned from appraising the impact of IFAD projects in Nepal on the GHG balance and stocks of natural resources - An analysis using the Ex-Ante Carbon balance Tool
Public-Private Partnerships for Agribusines Development
Nepal Agriculture Policy And Strategies For Poverty Alleviation And Food Security
Press Brief from FAO Representation in Nepal (May 2015)
Joint Press Release of FAO Representation and WHO Country Office for Nepal ( 17 November 2014 )
Press Release of FAO Representation in Nepal (16 October 2014)
Nepal Earthquakes - Executive Brief 4 June 2015
Nepal Agriculture Policy And Strategies For Poverty Alleviation And Food Security
Promoting Agriculture, Health, and Alternative Livelihoods (PAHAL)
CONTRACT FARMING IN NEPAL (Introducing pay as you go water access)
IOE Independent Office of Evaluation 2003-2013: Accountability and Learning for Better Rural Livelihoods (Number 24, May 2013)
NEPAL- Who is Assessing / Monitoring What, Where? (Jan '07 - Apr '08): Eastern Development Region
NEPAL- Who is Assessing / Monitoring What, Where? (Jan '07 - Apr '08):Mid-Western Development Region
Country Report on The State of the Nepal’s Plant Genetic Resources for Food and Agriculture
Articulating and Mainstreaming Agricultural Trade Policy and Support Measures-Policy Brief 6 – Highlights of the country case study – Nepal
Price Monitoring and Analysis Country Brief - Food Security Information for Decision Making
The Future of Food Creating sustainable communities through climate adaptation, Issue No. 2 ( December 2009 )
Nepal Initiative on Soaring Food Prices
Digital Financial Services in Nepal- Selecting Agents for Financial Services in Nepal
Nepal National Health Accounts 2009/10 - 2011/12
Nepal and FAO- Building food and nutrition security through sustainable agricultural development
Agricultural Technology For Development ( Seventieth session )
Country office food security update (October 2009)
Integrating Agriculture In National Adaptation Plans: Safeguarding Livelihoods And Promoting Resilience Through NAPs
National socioeconomic surveys in forestry
Special Report -- FAO/WFP FOOD Security Assessment Mission to Nepal
Market Watch 20 - December 2009
स्थलगत बुलेटिन नेपाली उधोगहरु; समृदि्को अवसर अथवा दन्द्वको स्रोत ?
Press Release of FAO Representation in Nepal Ambassador of Thailand, FAO officials visit Sindhupalchok
Micro Enterprises Development for Poverty Alleviation -Volume 1
Nepal - Reference Map
NEPAL- Who is Assessing / Monitoring What, Where? (Jan '07 - Apr '08): Central Development Region
Breaking New Ground Leasehold Forestry in Nepal (February 2004)
Policy Brief Civil Society collaboration in measuring impact of adaptation investments: the case of agriculture in Nepal
Country gender assessment of agriculture and the rural sector in Nepal
Field Activities: Integrated Pesticide Management In Mustang (April 2015, Mustang)
General Status of the System of Food and Agriculture Statistics in Nepal
Agricultural Policy And Strategies For Poverty Alleviation And Food Security-NEPAL
Local Development Fund Programme
Agricultural development and agrarian structure in Nepal (Working Paper)
Food Security Bulletin (July - August 2004)
Food Security Bulletin (May-June 2004)
Press Release of FAO Representation in Nepal (December 2014)
Evaluation Quality Assurance System
Support to National IPM Programme in Nepal - Consolidation, Up-Scaling and Institutionalization, Phase II (27 October 2008 – 31 January 2014)
100 result(s) found.