African Journal of Agricultural Economics and Rural Development ISSN 2375-0693 Vol. 5 (4), pp. 547-555, March, 2017. © International Scholars Journals

Full Length Research Paper

Determinants of demand for none agricultural rural employment (NARE) in Uganda: The case of the influx of motor cyclists (bodaboda) in Ntungamo District

1Willy Turyahikayo* and 2Justus Ayesigye

1Dept. of Economics, Makerere University Business School, 2Dept. of Accounting and Finance, Makerere University Business School-Mbarara campus.

*Corresponding author E-mail: wturyahikayo@mubs.ac.ug

Tel: +256-772-957295, Fax: +256-414-505921

Accepted 04 March, 2017

Abstract

Agriculture is an important sector in Uganda’s economy because of its contribution to employment, exports and Gross Domestic Product. However, agricultural production has been declining over the past three decades. One of the reasons for this decline has been attributed to gross shift of the young and energetic youths as they seek for non-agricultural rural employment. The current study sought to investigate factors responsible for this trend using the increasing motorcycle riding business in Uganda as a case study. A sample of 226 riders was selected using simple random sampling from one sub-county. Findings showed that both push and pull factors were significant in explaining demand for non-agricultural rural employment. Whereas there are inhibitive low agricultural prices and land tenure systems, the study found attractive conditions in non-agricultural employment such as quick returns and social infrastructures that pull the youths from agriculture. The study recommended that the government and national research systems ought to develop an attractive environment to make agriculture “cool” for the youths as has been suggested in some circles. This could involve developing quick maturing crops, social amenities and mechanization of agriculture at a small scale level that targets the youths.

Keywords: Pull factors, push factors, rural employment, bodaboda, Uganda.