Market integration and structural transformation in a poor rural economy

Mans Soderbom and Bob Rijkers

No 4856, Policy Research Working Paper Series from The World Bank

Abstract: By developing a simple theoretical model of the impact of market integration on sectoral output and employment in a poor rural setting, this paper demonstrates that trade can induce asymmetric growth. Under certain, plausible, assumptions, the non-farm sector will grow much faster than the agricultural sector when markets become integrated. Promoting market integration may thus be an effective way of encouraging diversification beyond agriculture and catalysing structural change in poor rural economies.

Keywords: Food&Beverage Industry; Economic Theory&Research; Rural Poverty Reduction; Food Security (search for similar items in EconPapers)
Date: 2009-03-01
New Economics Papers: this item is included in nep-agr and nep-dev
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Citations: View citations in EconPapers (2)

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