On why agriculture declines with economic growth
AbstractWhen economic growth is characterised by a slow rise in the demand for food and rapid growth in farm relative to non-farm productivity, it is understandable that agriculture in a closed economy declines in relative terms as that economy develops. But why should agriculture decline in virtually all open growing economies as well, including those able to retain a comparative advantage in agricultural products? A key part of the answer is that the demand for non-tradable goods . tends to be inc.o me elastic, so resources are diverted to their production even m open economies.
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Bibliographic InfoArticle provided by Blackwell in its journal Agricultural Economics.
Volume (Year): 1 (1987)
Issue (Month): 3 (October)
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Web page: http://www.blackwell-synergy.com/loi/agec
Other versions of this item:
- Anderson, Kym, 1987. "On Why Agriculture Declines with Economic Growth," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 1(3), October.
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- Spraos, John, 1980. "The Statistical Debate on the Net Barter Terms of Trade between Primary Commodities and Manufactures," Economic Journal, Royal Economic Society, vol. 90(357), pages 107-28, March.
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