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Structural Transformation of the Agricultural Sector In Low- and Middle-Income Economies

Author

Listed:
  • Klaus Deininger

    (The World Bank, Washington, DC, USA)

  • Songqing Jin

    (Department of Agricultural, Food, and Resource Economics, Michigan State University, Lansing, Michigan, USA)

  • Meilin Ma

    (Department of Agricultural Economics, Purdue University, West Lafayette, Indiana, USA)

Abstract

Movement of labor from agriculture to nonagriculture and the associated increase in farm size through structural transformation are at the core of economic development. We conduct a comprehensive review of the literature exploring the causes and consequences of the transformation. We discuss (a) the size and determinants for the persisting wage gap between agriculture and nonagriculture, (b) policy-induced barriers to structural changes, (c) the role of trade costs and technical change in shaping the nature of structural transformation and comparative advantage of regions, and (d) how the overall development of an economy affects the relationship between farm size and farm productivity and hence changes competitiveness of different scales of farms. We also identify questions for policy and research and the ways in which new sources and interoperability of data can help answer these questions.

Suggested Citation

  • Klaus Deininger & Songqing Jin & Meilin Ma, 2022. "Structural Transformation of the Agricultural Sector In Low- and Middle-Income Economies," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 221-241, October.
    • Handle: RePEc:anr:reseco:v:14:y:2022:p:221-241
    DOI: 10.1146/annurev-resource-111820-033252
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    Citations

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    Cited by:

    1. Ma, Meilin, 2023. "Interdependent investments in attached and movable assets under insecure land rights," China Economic Review, Elsevier, vol. 77(C).
    2. Kym Anderson, 2023. "Why did agriculture’s share of Australian GDP not decline for a century?," Departmental Working Papers 2023-09, The Australian National University, Arndt-Corden Department of Economics.
    3. Chiarella, Cristina & Meyfroidt, Patrick & Abeygunawardane, Dilini & Conforti, Piero, 2023. "Balancing the trade-offs between land productivity, labor productivity and labor intensity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(10), pages 1618-1634.
    4. Xiang Li & Xiaoqin Guo, 2023. "Can Policy Promote Agricultural Service Outsourcing? Quasi-Natural Experimental Evidence from China," Sustainability, MDPI, vol. 15(2), pages 1-18, January.

    More about this item

    Keywords

    developing economies; productivity; resource allocation; smallholder farming; structural transformation;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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