Green Revolutions and Miracle Economies : Agricultural Innovation, Trade and Growth
AbstractThe 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 as well as by a rising world demand for labor-intensive manufactured exports. We explore the relative roles of agricultural innovation 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 sustained factor accumulation in 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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Bibliographic InfoPaper provided by Singapore Management University, School of Economics in its series Working Papers with number 20-2005.
Length: 20 pages
Date of creation: Sep 2005
Date of revision:
Publication status: Published in SMU Economics and Statistics Working Paper Series
Find related papers by JEL classification:
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- F1 - International Economics - - Trade
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-09-30 (Agricultural Economics)
- NEP-ALL-2006-09-30 (All new papers)
- NEP-INO-2006-09-30 (Innovation)
- NEP-INT-2006-09-30 (International Trade)
- NEP-SEA-2006-09-30 (South East Asia)
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