New Technological Knowledge, Rural and Urban Agriculture, and Steady State Economic Growth

Amitrajeet Batabyal, Karima Kourtit and Peter Nijkamp

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze the growth effects over space arising from the adoption of new agricultural technology in a rural-urban setting. We use a dynamic model to study the impacts of technology and learning on the steady state growth rates of rural and urban regions that produce agricultural goods. New applications of agricultural technologies are tested and adopted in the rural region and they are gradually learned by the urban region. Our analysis leads to four results. First, we determine the steady state growth rate of agricultural output per worker in the rural region. Second, we define an urban to rural region agricultural technology knowledge ratio, analyze its stability properties, and then use this ratio to compute the steady state growth rate of agricultural output per worker in the urban region. Third, for specific parameter values, we study the ratio of agricultural output per worker in the urban to the rural region when both regions have converged to their balanced growth paths. Finally, we discuss the policy implications of our analysis.

Keywords: Economic Growth; Learning; Rural Region; Technology; Urban Region (search for similar items in EconPapers)
JEL-codes: O18 Q16 R11 (search for similar items in EconPapers)
Date: 2018-01-20, Revised 2018-06-22
New Economics Papers: this item is included in nep-agr, nep-gro, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: New Technological Knowledge, Rural and Urban Agriculture, and Steady State Economic Growth (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:87607

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