The Role of Agricultural Productivity on Structural Change

Been-Lon Chen and Shian-Yu Liao

No 14-A007, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan

Abstract: Many authors have estimated and found that the productivity growth in agriculture was higher than that in non-agriculture in today’s richest countries. Several papers suggested that growth in agricultural productivity was essential for today’s richest countries to take off early. However, few articles noticed that growth in agricultural productivity is critical in driving structural change in today’s richest countries. This paper studies a two-sector neoclassical growth model with subsistence agricultural consumption and shows that growth in agricultural productivity plays a more important role than growth in non-agricultural productivity in governing massive structural change in today’s richest countries.

Keywords: two-sector neoclassical growth model; subsistence agricultural consumption; sectoral productivity growth; structural transformation; sectoral reallocation; shooting algorithm (search for similar items in EconPapers)
JEL-codes: O10 O11 O14 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2014-05
New Economics Papers: this item is included in nep-agr, nep-eff and nep-gro
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Related works:
Journal Article: The Role of Agricultural Productivity on Structural Change (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:sin:wpaper:14-a007

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