Agricultural Productivity, Comparative Advantage, and Economic Growth

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 934

Classification and Topics

• Classification: Wirtschaft ; Economic Growth of Open Economies ; Macroeconomic Analyses of Economic Development ; One, Two, and Multisector Growth Models
• Subject: Agricultural Revolution ; Dutch Disease ; Endogenous Growth ; Engel's Law ; Industrail Revolution ; Learning-by-doing ; Regional Divergence

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Matsuyama, Kiminori
• Event: Veröffentlichung
• (who): Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
• (where): Evanston, IL
• (when): 1990

Further information

• Handle: http://hdl.handle.net/10419/221293
• Last update: 10.03.2025, 11:43 AM CET