TY - JOUR
T1 - Agricultural productivity, comparative advantage, and economic growth
AU - Matsuyama, Kiminori
PY - 1992/12
Y1 - 1992/12
N2 - 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.
AB - 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.
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U2 - 10.1016/0022-0531(92)90057-O
DO - 10.1016/0022-0531(92)90057-O
M3 - Article
AN - SCOPUS:0001194249
SN - 0022-0531
VL - 58
SP - 317
EP - 334
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -
