IDEAS home Printed from https://ideas.repec.org/a/psl/pslqrr/202233.html
   My bibliography  Save this article

Land-constrained growth in a developing economy: A Kaldorian perspective

Author

Listed:
  • Isha Gupta

    (University of Delhi, and Jawaharlal Nehru University (JNU), New Delhi, India)

Abstract

The paper develops a two-sector model of economic growth, using agriculture and industry. The distinguishing feature in this analysis is that land is an essential input in the agricultural sector, but it is also used in the production process of industrial sector, which is assumed to be imperfectly competitive. The significant role of land allocations is highlighted for a developing economy like India, where any constraint on land transfers from agricultural to non-agricultural sectors imposes a constraint on the overall growth process of the economy. Using the two-sector Kaldorian framework, we analyse the complementary interactions between agriculture and industry through trade flows, labour movements, and land transfers in this setup. We characterize the balanced growth path for such an economy in the long run using two scenarios: a) equilibrium growth with fixed distribution of land by the centralized authority in each sector and b) equilibrium growth with inter-sectoral land transfers accompanied by land-saving innovations in each sector.

Suggested Citation

  • Isha Gupta, 2022. "Land-constrained growth in a developing economy: A Kaldorian perspective," PSL Quarterly Review, Economia civile, vol. 75(302), pages 263-284.
    • Handle: RePEc:psl:pslqrr:2022:33
    as

    Download full text from publisher

    File URL: https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17614/16890
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Kaldor, 1975. "What is Wrong with Economic Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(3), pages 347-357.
    2. Wendy Wolford & Saturnino M. Borras Jr. & Ruth Hall & Ian Scoones & Ben White & Michael Levien, 2013. "Regimes of Dispossession: From Steel Towns to Special Economic Zones," Development and Change, International Institute of Social Studies, vol. 44(2), pages 381-407, March.
    3. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-1255, December.
    4. Adelman, Irma, 1984. "Beyond export-led growth," World Development, Elsevier, vol. 12(9), pages 937-949, September.
    5. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143-143.
    6. A. P. Thirlwall, 2015. "A General Model of Growth and Development on Kaldorian Lines," Palgrave Studies in the History of Economic Thought, in: Essays on Keynesian and Kaldorian Economics, chapter 13, pages 302-325, Palgrave Macmillan.
    7. John S. L. McCombie & Mark Roberts, 2008. "Effective-demand-constrained growth in a two-sector Kaldorian model," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 31(1), pages 57-78, September.
    8. Adelman, Irma, 1984. "Beyond export-led growth," CUDARE Working Paper Series 309, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    9. Sud, Nikita, 2014. "Governing India’s Land," World Development, Elsevier, vol. 60(C), pages 43-56.
    10. Vogel, Stephen J, 1994. "Structural Changes in Agriculture: Production Linkages and Agricultural Demand-Led Industrialization," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 136-156, January.
    11. Sanyal, Anirban & Singh, Nirvikar, 2021. "Structural Change and Economic Growth: Patterns and Heterogeneity among Indian States and Implications for a Post-COVID Recovery," India Policy Forum, National Council of Applied Economic Research, vol. 17(1), pages 143-198.
    12. Kaldor, Nicholas [Lord], 1976. "Inflation and Recession in the World Economy," Economic Journal, Royal Economic Society, vol. 86(344), pages 703-714, December.
    13. Agriculture Census Division GoI, 2015. "All India Report on Number and Area of Operational Holdings," Working Papers id:6811, eSocialSciences.
    14. Maxwell, S. J. & Singer, H. W., 1979. "Food aid to developing countries: A survey," World Development, Elsevier, vol. 7(3), pages 225-246, March.
    15. Dutt, Amitava Krishna, 1992. "A Kaldorian Model of Growth and Development Revisited: Comment," Oxford Economic Papers, Oxford University Press, vol. 44(1), pages 156-168, January.
    16. Kainth, Gursharan Singh & Bawa, Rajinder Singh, 2013. "Productivity Of Indian Agriculture Growth And Determinates," Working Papers 253311, Guru Arjan Dev Institute of Development Studies (IDSAsr).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Langarudi, Saeed P. & Maxwell, Connie M. & Bai, Yining & Hanson, Austin & Fernald, Alexander, 2019. "Does Socioeconomic Feedback Matter for Water Models?," Ecological Economics, Elsevier, vol. 159(C), pages 35-45.
    2. de Oliveira, Guilherme & Lima, Gilberto Tadeu, 2022. "Economic growth as a double-edged sword: The pollution-adjusted Kaldor-Verdoorn effect," Ecological Economics, Elsevier, vol. 199(C).
    3. Diao, Xinshen & Fekadu, Belay & Haggblade, Steven & Seyoum Taffesse, Alemayehu & Wamisho, Kassu & Yu, Bingxin, 2007. "Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models," IFPRI discussion papers 695, International Food Policy Research Institute (IFPRI).
    4. Murat Arsel & Servaas Storm, 2015. "Forum 2015," Development and Change, International Institute of Social Studies, vol. 46(4), pages 666-699, July.
    5. Antoci, Angelo & Borghesi, Simone & Iannucci, Gianluca & Ticci, Elisa, 2019. "Land use and pollution in a two-sector evolutionary model," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 114-125.
    6. James Culham & John E. King, 2013. "Horizontalists and Verticalists after 25 years," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 391—405-3, October.
    7. S.M. Shafaeddin, 2004. "Who Is The Master? Who Is The Servant? Market Or Government? An Alternative Approach: Towards A Coordination System," UNCTAD Discussion Papers 175, United Nations Conference on Trade and Development.
    8. Joko Mariyono, 2009. "Technological and Institutional Changes in the Indonesian Rice Sector: From Intensification to Sustainable Revitalization," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(2), pages 125-144, December.
    9. Shouvik Chakraborty & Prabirjit Sarkar, 2020. "From The Classical Economists To Empiricists: A Review Of The Terms Of Trade Controversy," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1111-1133, December.
    10. Subramaniam, Vijay & Reed, Michael R., 2009. "Agricultural Inter-Sectoral Linkages and Its Contribution to Economic Growth in the Transition Countries," 2009 Conference, August 16-22, 2009, Beijing, China 51586, International Association of Agricultural Economists.
    11. Ramesh Chandra & Roger Sandilands, 2006. "The role of pecuniary external economies and economies of scale in the theory of increasing returns," Review of Political Economy, Taylor & Francis Journals, vol. 18(2), pages 193-208.
    12. Ferdinando Targetti, 2005. "Forum 2005," Development and Change, International Institute of Social Studies, vol. 36(6), pages 1185-1199, November.
    13. Patrice Rélouendé Zidouemba, 2021. "Does agriculture possess the strong linkages necessary to drive industrialization and poverty reduction in Burkina Faso?," Economics Bulletin, AccessEcon, vol. 41(3), pages 911-928.
    14. Matteo Deleidi & Claudia Fontanari & Santiago José Gahn, 2023. "Autonomous demand and technical change: exploring the Kaldor–Verdoorn law on a global level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 57-80, April.
    15. Arndt, Channing & Schiller, Rico & Tarp, Finn, 2001. "Grain transport and rural credit in Mozambique: solving the space-time problem," Agricultural Economics, Blackwell, vol. 25(1), pages 59-70, June.
    16. Irma Adelman, 2017. "Confessioni di un'inguaribile romantica (Confessions of an incurable romantic)," Moneta e Credito, Economia civile, vol. 70(279), pages 239-263.
    17. Derek Headey, 2008. "The Principal Components of Growth in the Less Developed Countries," Kyklos, Wiley Blackwell, vol. 61(4), pages 568-598, November.
    18. Codrina Rada, 2007. "A growth model for a two-sector economy with endogenous productivity," Working Papers 44, United Nations, Department of Economics and Social Affairs.
    19. Randy Stringer & Prabhu Pingali, 2004. "Agriculture's Contributions to Economic and Social Development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 1-5.
    20. Adelman, Irma & Berck, Peter, 1990. "Food security policy in a stochastic world," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 25-55, November.

    More about this item

    Keywords

    two-sector growth model; agriculture; industry; land-constraint; balanced growth path;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:psl:pslqrr:2022:33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlo D'Ippoliti (email available below). General contact details of provider: http://www.economiacivile.it .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.