This article investigates the long-run decline of the agricultural sector during economic development and its contribution to this process. A two-sector model is proposed where the share of agriculture, relative prices and capital accumulation are simultaneously determined within the economy. Under this general equilibrium framework, short-run adjustments with respect to long-run equilibria are admitted through a set of alternative dynamic specifications. The model is then applied to;the panel dataset of 20 Italian regions observed over the period 1951-2002 of dramatic economic development but still persistent disparities between Southern and Northern regions.
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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Economia in its series Working Papers with number
300.
Find related papers by JEL classification: C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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