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The Missing Food Problem

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  • Trevor Tombe

    (University of Calgary)

Abstract

Agriculture in poor countries has low productivity, high employment, and negligible trade flows relative to other sectors. These facts motivate a multi-sector, open-economy view of international productivity differences. With a quantitative multi-country model featuring nonhomothetic preferences, multiple interrelated sectors, distorted labor markets, and costly trade, I find: (1) trade amplifies the negative effect of labor market distortions; (2) trade costs -- large for poor countries, especially in agriculture -- significantly contribute to international productivity differences; and (3) explicitly modeling agriculture reveals additional through which poor countries may gain from trade.

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Bibliographic Info

Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 2014-35.

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Date of creation: 10 Jun 2014
Date of revision: 10 Jun 2014
Handle: RePEc:clg:wpaper:2014-35

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Keywords: Food Problem; Productivity; Dual Economy Models; Trade; Agriculture;

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References

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Cited by:
  1. repec:fip:fedreq:y:2011:i:3q:p:329-357:n:vol.97no.3 is not listed on IDEAS
  2. Diego Restuccia, 2011. "Recent developments in economic growth," Economic Quarterly, Federal Reserve Bank of Richmond, issue 3Q, pages 329-357.
  3. Trevor Tombe & Jennifer Winter, 2014. "What's Inside Counts: Migration, Taxes, and the Internal Gains from Trade," Working Papers 2013-28, Department of Economics, University of Calgary, revised 05 May 2014.
  4. Jonathan Eaton & Samuel Kortum, 2012. "Putting Ricardo to Work," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 65-90, Spring.
  5. Diego Restuccia & Richard Rogerson, 2012. "Misallocation and Productivity," Working Papers tecipa-468, University of Toronto, Department of Economics.

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