Market integration and structural transformation in a poor rural economy
AbstractBy developing a simple theoretical model of the impact of market integration on sectoral output and employment in a poor rural setting, this paper demonstrates that trade can induce asymmetric growth. Under certain, plausible, assumptions, the non-farm sector will grow much faster than the agricultural sector when markets become integrated. Promoting market integration may thus be an effective way of encouraging diversification beyond agriculture and catalysing structural change in poor rural economies.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4856.
Date of creation: 01 Mar 2009
Date of revision:
Food&Beverage Industry; Economic Theory&Research; Rural Poverty Reduction; Food Security;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-03-22 (Agricultural Economics)
- NEP-ALL-2009-03-22 (All new papers)
- NEP-DEV-2009-03-22 (Development)
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