Agricultural productivity, comparative advantage, and economic growth

Kiminori Matsuyama*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

582 Scopus citations

Abstract

The role of agricultural productivity in economic development is addressed in a two-sector model of endogenous growth in which (a) preferences are non-homothetic and the income elasticity of demand for the agricultural good is less than unitary, and (b) the engine of growth is learning-by-doing in the manufacturing sector. For the closed economy case, the model predicts a positive link between agricultural productivity and economic growth, while, for the small open economy case, it predicts a negative link. This suggests that the openness of an economy should be an important factor when planning development strategy and predicting growth performance.

Original languageEnglish (US)
Pages (from-to)317-334
Number of pages18
JournalJournal of Economic Theory
Volume58
Issue number2
DOIs
StatePublished - Dec 1992

ASJC Scopus subject areas

  • Economics and Econometrics

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