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Food staple production and alternative development paths: India and China

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  • Richard Grabowski

Abstract

In this paper, it is argued that structural change has been quite different in India as compared with China, with the former seeming to skip labor-intensive manufacturing while the latter fully exploiting this sector's potential for employment and growth. It is hypothesized that productivity growth in agriculture, particularly food staples, is a critical factor in explaining the differences in structural change. In China, rapid agricultural growth kept food cheap and thus labor inexpensive, fostering rapid growth in labor-intensive manufacturing. In India, sluggish agricultural growth and rising food costs meant that labor in India has become increasingly expensive and this has inhibited the development of labor-intensive manufacturing.

Suggested Citation

  • Richard Grabowski, 2018. "Food staple production and alternative development paths: India and China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(3), pages 357-373, July.
    • Handle: RePEc:taf:rjapxx:v:23:y:2018:i:3:p:357-373
    DOI: 10.1080/13547860.2018.1469588
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