Industrialization without Innovation

Joan Monrà S, Jacopo Ponticelli and Paula Bustos ()
Authors registered in the RePEc Author Service: Joan Monras

No 1444, Working Papers from Barcelona School of Economics

Abstract: Labor-saving technologies in agriculture can foster structural transformation by re- leasing workers who find jobs in manufacturing. The traditional view is that factor reallocation towards manufacturing Generates innovation and productivity growth. We document, instead, that regions more exposed to a large and exogenous in- crease in agricultural productivity in Brazil industrialized but experienced lower manufacturing productivity growth. Workers released from agriculture were mostly unskilled and primarily moved to the least skill-intensive manufacturing industries. This paper explores the various Mechanisms that can account for the observed manufacturing productivity decline. Changes in worker composition and lower incentives to innovate within manufacturing play prominent roles.

Keywords: productivity; labor mobility; Skill-biased Technical Change; agricultural productivity; genetically engineered soy; Brazil (search for similar items in EconPapers)
JEL-codes: F16 J43 O13 O14 O33 O41 (search for similar items in EconPapers)
Date: 2024-05
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Related works:
Working Paper: Industrialization without innovation (2023)
Working Paper: Industrialization without Innovation (2019)
Working Paper: Industrialization without Innovation (2018)
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