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Green revolutions and miracle economies: Agricultural innovations, trade and growth

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  • Brishti Guha

Abstract

The purpose of this paper is to develop a simple model of an economy in which growth is driven by a combination of exogenous technical change in agriculture and a rising world demand for labor-intensive manufactured exports. We explore the relative roles of an exogenous agricultural productivity shock and rising export demand in a model with two traded industrial goods and a non-traded agricultural good, food. When the non-traded sector uses a specific factor, we show that technical change in agriculture may be the key to factor migration into industry, in particular driving intersectoral labor migration. A key assumption is a less than unitary price elasticity of demand for food. Our results could form a crucial link in capturing the story of labor-abundant economies which experienced structural transformation and growth through labor-intensive manufactured exports, without prior technology breakthroughs in industry. They contribute to explaining the massive growth in factor accumulation which shows up in some growth accounting studies: they may also imply that some of the contribution of 'technical progress' is mistakenly attributed solely to factor accumulation.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190600690986
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 15 (2006)
Issue (Month): 2 ()
Pages: 209-230

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Handle: RePEc:taf:jitecd:v:15:y:2006:i:2:p:209-230

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Related research

Keywords: Structural change; agricultural productivity; labor migration; terms of trade;

References

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  1. Pasquale M. Sgro & Jean-Jacques Nowak & Mondher Sahli, 2004. "Tourism, Trade and Domestic Welfare," Working Papers 2004.24, Fondazione Eni Enrico Mattei.
  2. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  3. Brishti Guha, 2005. "Female labour force participation and labour saving gadgets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(4), pages 483-495.
  4. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
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