Agricultural Productivity, Comparative Advantage, and Economic Growth

The role of agricultural productivity in economic development is addressed in a two-sector model of endogenous growth in which a) preferences are non-homothetic and income elasticity of demand for the agricultural good is less than unitary, and b) the engine of growth is learning-by-doing in the manufacturing sector. For the closed economy case, the model predicts a positive link between agricultural productivity and economic growth, while, for the small open economy case, it predicts a negative link. This suggests that the openness of an economy should be an important factor when planning dev... Mehr ...

Verfasser: Matsuyama, Kiminori
Dokumenttyp: doc-type:workingPaper
Erscheinungsdatum: 1990
Verlag/Hrsg.: Evanston
IL: Northwestern University
Kellogg School of Management
Center for Mathematical Studies in Economics and Management Science
Schlagwörter: ddc:330 / F43 / O11 / O41 / Agricultural Revolution / Dutch Disease / Endogenous Growth / Engel's Law / Industrail Revolution / Learning-by-doing / Regional Divergence
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29049137
Datenquelle: BASE; Originalkatalog
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Link(s) : http://hdl.handle.net/10419/221293

The role of agricultural productivity in economic development is addressed in a two-sector model of endogenous growth in which a) preferences are non-homothetic and income elasticity of demand for the agricultural good is less than unitary, and b) the engine of growth is learning-by-doing in the manufacturing sector. For the closed economy case, the model predicts a positive link between agricultural productivity and economic growth, while, for the small open economy case, it predicts a negative link. This suggests that the openness of an economy should be an important factor when planning development strategy and predicting growth performance.