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Factor Analysis of the Impact of Industrial Areas on Rural Development: a Case Study Crossmark of Farahan Industrial Area in Iran Journal of ArchiveSustainable of SID Rural Development December 2018, Volume 2, Number 1-2 Research Paper: Factor Analysis of the Impact of Industrial Areas on Rural Development: A Case Study CrossMark of Farahan Industrial Area in Iran Soudeh Golabi1, Mohammad Sadegh Ebrahimi2* 1. Graduated student, Department of rural development, College of Agriculture, Isfahan University of Technology, Isfahan, Iran. 2. Assistant professor, Department of rural development, College of Agriculture, Isfahan University of Technology, Isfahan, Iran. Use your device to scan and read the article online Citation: Golabi, S., & Ebrahimi, M. S. (2018). Factor Analysis of the Impact of Industrial Areas on Rural Development: A Case Study of Farahan Industrial Area in Iran. Journal of Sustainable Rural Development, 2(1-2), 51-60. https://doi. org/10.32598/jsrd.01.03.250 : https://doi.org/10.32598/jsrd.01.03.250 Article info: A B S T R A C T Received: 19 Dec. 2017 Accepted: 15 July 2018 Purpose: Rural industrialization is a means of technical change to improve the quality of life for the current generation in rural areas. One of the most important problems in many developing countries is that of unemployment. This paper reports a survey conducted in Farahan industrial area in Iran through which the impact of industrial areas on the development of rural regions was investigated as a case study. Methods: The population of the research included 236 employees selected in the industrial area. A researcher-made questionnaire was used to collect the data. Results: According to the results of the factor analysis, economic, social, and infrastructural factors explain 61% of the industrial impact on rural development. The economic factor with an impact of 29% is the most important factor. The social and infrastructural factors with impacts of 23% and 9.3% are found respectively as the second and the third influential factors in the rural industrialization of villages in Farhan County. Keywords: Conclusion: To alleviate the employment problem in rural areas, setting up industries or Rural industrialization, Rural expanding non-farm jobs can be a logical way out of the problem. Also, to raise rural people’s development, Farahan, Factor income and increase their tendency to stay in villages, a planned strategy is required for rural analysis industrialization. 1. Introduction have concluded that employment in non-farm sectors is definitely more lucrative and attractive than in the agri- ost of the poorest people in the world cultural sector (Osunade, 1978). Therefore, the change live in rural areas and are engaged in of employment conditions and the growth of non-farm farming. Considering the increased jobs have paved the way for overcoming rural unem- M pressure on land, many researchers ployment (Himanshu, 2011). Rural development is in- * Corresponding Author: Mohammad Sadegh Ebrahimi, PhD Address: Department of rural development, College of Agriculture, Isfahan University of Technology, Isfahan, Iran. Tel: +98 (31) 33913446 E-mail: [email protected] www.SID.ir 51 Journal of ArchiveDecember 2018, of Volume SID 2, Number 1-2 Sustainable Rural Development fluenced by a wide range of factors, such as equality of Rural industrialization, as a concept relevant to rural life, employment, and income. To identify the impact of development, has been defined as a means of reduc- individual factors, to interpret the relationships among ing unemployment and poverty in rural areas as well them, to gain insight into the underlying structure of the as decreasing rural-urban migration (Chadha, 1996). variables involved, to assess the control on those vari- Through rural industrialization, technical changes occur ables for rural development, and to evaluate the impact to improve the quality of life for the rural population. of the variables on the spatial distribution of nonfarm Improvement of the income and the standards of living jobs, factor analysis is an appropriate technique to ap- of factory employees is the most direct impact of rural ply (Matalas and Reiher, 1967). The rural non-farm sec- industrialization (Bertrand and Osborne, 1959). The ru- tor encompasses all non-agricultural activities including ral non-farm sector can contribute to economic growth, mining and quarrying, household and non-household rural jobs, poverty reduction, and spatially balanced pop- industries, processing, repair, construction, communica- ulation distribution. (Lanjouw et al., 2000). Foss (1997) tions, storage, trade and commerce, transportation, and emphasized the importance of small-scale industries other services in villages. Yet, industry is usually the in rural areas and creation of more jobs in those areas most dominant non-farm job. Therefore, the approach to than in urban areas. To Saith (1992), a fairly equitable rural non-farm development has becomes synonymous income distribution can be stimulated by rural industry. with rural industrial development. Indeed, rural industry In a paper titled “industrialization and rural development occupies a central place in rural development, employ- in Nigeria: towards overcoming the pitfalls of the past”, ment and welfare policies (Chadha, 1996). Through fac- Gofwen (2001) exanimated the relationship between tor analysis, it is possible to identify several rural devel- rural development and industrialization in Nigera. He opment factors reasonably, but that is a very subjective suggested policies to establish an industry based on the task to interpret those factors in terms of actual control- available raw materials within each region. If pursued, ling sources and processes. Regardless of its subjectivity, the policies would not only facilitate the development of factor analysis has provided vital information about the the rural areas and improve employment opportunities relationships of basic variables involved in rural devel- there but also serve to divert the over-dependence of the opment. So far, this technique has been applied to sev- nation on one item as the only foreign exchange earner. eral sub-disciplines of sociology such as rural develop- ment studies, rural management, and rural planning. Non-farm sector income distribution in support of the poor is also of significance. The statistical results of a 2. Literature Review study conducted in six Texas communities showed that rural industrialization had a statistically significant According to the World Bank report (1975), rural de- positive effect on the income of those employed (Rein- velopment generally refers to the process of improving schmiedt and Jones, 1977). Agricultural development the quality of life and economic well-being of people liv- linked to rural industrial growth contributes to the im- ing in relatively isolated and sparsely populated areas. In provement of peasants’ income (Xu and Tan, 2002). As fact, itt involves strategic planning to improve the eco- Sigurdson (1975) showed, rural industry had played an nomic and social life of rural poor groups and to extend important role in the social transformation of the Chi- the benefits of development to those who seek a living nese countryside and contributed considerably to the in rural areas. The poor groups in focus are small-scale rectification of the imbalance between urban and rural farmers, tenants and the landless (Dixon, 1997). Aslam areas. Rural industrialization may have a few impacts on (1981) defined this concept of rural development as a job patterns as well (Sigurdson, 1975). Parikh and Thor- dynamic process leading to higher levels of living and a becke (1996) examined the impact of rural industrializa- better quality of life. Similarly, Schumacher (1983) con- tion on village life and economy. The result showed that sidered rural development as the process of promoting the decentralization of industries had contributed consid- people’s skills and knowledge through instruction so that erably to rural development and poverty alleviation in they can rely on and help themselves. The available defi- rural areas nearby factories. It was found that the people nitions and interpretations highlight the central point that had become more aware of the advantages of education, rural development is about improving the welfare and investment in agriculture had risen, exploitation of labor- productivity of rural communities, about the scope and ers had significantly reduced, and the factory salaries had process of improving the participation of rural people in reduced poverty and lowered income inequality among their own affairs, and about the ways and means of mak- household classes. In a theoretical approach, Barrel ing this possible (Ocheni and Nwankwo, 2012). (1984) referred to conflicting views about employment and income levels as targets of rural industrialization www.SID.ir Golabi, S., et al. (2018). Factor analysis of the impact of industrial areas on rural development. JSRD, 2(1-2), 51-60. 52 Journal of ArchiveSustainable of SID Rural Development December 2018, Volume 2, Number 1-2 and stated that these targets treat separately under static infrastructural types, like water supply, sanitation, elec- conditions. For example, in a long-term survey, the ex- tricity, roads, drainage, schools, health centers, market perimental data related to rural industries in northeastern places and other facilities in rural areas to increase rural Brazil showed that import substitution policies to reach prosperity and prevent uncontrolled rural migration to development goals can be effective. (This conclusion cities.
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