Agricultural Diversity, Structural Change, and Long-Run Development: Evidence from the United States

Martin Fiszbein

American Economic Journal: Macroeconomics, 2022, vol. 14, issue 2, 1-43

Abstract: This paper examines the role of agricultural diversity in the process of development. Using data from US counties and exploiting climate-induced variation in agricultural production patterns, I show that mid-nineteenth-century agricultural diversity had positive long-run effects on population density and income per capita. During the Second Industrial Revolution, agricultural diversity fostered industrialization, diversification within manufacturing, patent activity, formation of new labor skills, and the expansion of knowledge- and skill-intensive industries. These results are consistent with the hypothesis that diversity spurs the acquisition of new ideas and new skills because of the presence of cross-sector spillovers and complementarities.

JEL-codes: N31 N32 N51 N52 N91 N92 Q10 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1257/mac.20190285

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